GASB issues two exposure drafts for comment

GASB issued an exposure draft aimed at improving the consistency of reporting related to subsequent events and an exposure draft of proposed changes to its implementation guide.

The exposure draft of Subsequent Events reexamines the requirements in Statement No. 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards, in order to improve the financial reporting requirements for subsequent events.

GASB has observed a diversity in practice in the application of existing guidance, according to a news release.

The proposal defines subsequent events as “transactions or other events that occur after the date of the financial reporting statements but before the date the financial statements are available to be issued.” It describes the date financial statements are available to be issued as the date at which:

• The financial statements are complete in a form and format that complies with GAAP; and
• All approvals necessary for issuance have been obtained.

The proposed changes also clarify the subsequent events that constitute recognized and nonrecognized events and establish specific note disclosure requirements for nonrecognized events.

In addition, GASB proposed periodic updates in the exposure draft of Implementation Guidance Update — 2025, which contains nearly 20 proposed new and amended questions and answers that address leases, accounting changes and error corrections, conduit debt obligations, cash flows reporting, compensated absences, and financial reporting model improvements.

Stakeholders can share comments on Subsequent Events until Feb. 21, 2025, and on Implementation Guidance Update — 2025, until Jan. 24, 2025.

GASB also is accepting comments through Jan. 17, 2025, on preliminary views it has issued on accounting and financial reporting for infrastructure assets.

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