FASAB proposes delay in long-term fiscal projections transition

BY KEN TYSIAC

The Federal Accounting Standards Advisory Board (FASAB) is proposing that new presentation requirements for long-term fiscal projections for the U.S. government and related disclosures be delayed one year, to take effect in fiscal year 2015 rather than fiscal year 2014.

The standard requires projections and related disclosures to be presented in a basic financial statement rather than as required supplementary information. Under the proposed delay, this information would be presented as required supplementary information in fiscal year 2014 and in a basic financial statement in fiscal year 2015.

The FASAB is proposing the delay because the AICPA has been considering guidance for auditors and appropriate audit report language regarding the statement of long-term projections, the statement of social insurance, and the statement of changes in social insurance amounts.

Preparers and auditors will need additional time to plan for audits based on the final guidance, which is expected to be issued in the coming months, according to FASAB. In recognition of this, FASAB is proposing and seeking public comment on the delay.

FASAB is seeking comments by June 2. They can be provided by email at fasab@fasab.gov.

“Long-term fiscal projections are essential for the reader of the financial statements to assess whether future budgetary resources are likely to be sufficient to sustain public services,” FASAB Chairman Tom Allen said in a news release. “Careful consideration and adequate planning of the auditor role is needed to transition this important information to full audit status.”

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA senior editor.

Where to find November’s flipbook issue

The Journal of Accountancy is now completely digital. 

 

 

 

SPONSORED REPORT

Get Clients Ready for Tax Season

This comprehensive report looks at the changes to the child tax credit, earned income tax credit, and child and dependent care credit caused by the expiration of provisions in the American Rescue Plan Act; the ability e-file more returns in the Form 1040 series; automobile mileage deductions; the alternative minimum tax; gift tax exemptions; strategies for accelerating or postponing income and deductions; and retirement and estate planning.