FASAB seeks comment on guidance for management discussion and analysis

The Federal Accounting Standards Advisory Board (FASAB) is seeking feedback on an exposure draft aimed at updating the guidance for management discussion and analysis (MD&A).

FASAB is seeking public comments through Dec. 7 on a proposed Statement of Federal Financial Accounting Standards (SFFAS) titled Management’s Discussion and Analysis: Rescinding and Replacing SFFAS 15.

“This proposal would provide more flexibility for reporting MD&A, reduce preparer burden and redundancy, and enhance transparency,” FASAB Chair George A. Scott said in a news release.

This proposal would provide a comprehensive set of standards to guide management in how to present a guidance that is balanced, integrated, concise, and understandable about the reporting entity’s organization and mission; financial position and condition; operating performance, opportunities, and risks; and systems, internal controls, and compliance with applicable laws and regulations, according to the release.

FASAB said it proposed the standards to provide a principle-based approach that would merge and update relevant content from SFFAC 3 and SFFAS 15 and is consistent with FASAB’s reporting objectives for budgetary integrity, operating performance, stewardship, and systems and controls.

— To comment on this article or to suggest an idea for another article, contact Kevin Brewer at Kevin.Brewer@aicpa-cima.com.