GASB updates its financial reporting blueprint

GASB issued guidance aimed at improving the blueprint for government financial reports that it established a quarter-century ago.

GASB Statement No. 103, Financial Reporting Model Improvements, provides targeted improvements to the financial reporting model that was established for state and local governments in 1999 by GASB Statement No. 34, Basic Financial Statements — and Management’s Discussion and Analysis — for State and Local Governments.

According to a news release, Statement No. 103 builds on Statement No. 34 to enhance the effectiveness of governmental financial reports in providing information essential for decision-making and assessing a government’s accountability. Statement No. 103 establishes or modifies existing requirements related to:

• Management’s discussion and analysis;
• Unusual or infrequent items (previously known as extraordinary and special items);
• Presentation of the proprietary fund statement of revenues, expenses, and changes in fund net position;
• Major component unit information; and
• Budgetary comparison information.

The requirements of Statement No. 103 are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application is encouraged.

The Financial Accounting Foundation, which oversees GASB and FASB, issued its 2023 Annual Report on Wednesday, which in part commemorates the 40th anniversary of GASB’s creation.

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