FASAB provides new guidance on public-private partnerships disclosures

In response to stakeholder comments, the Federal Accounting Standards Advisory Board (FASAB) issued a technical release to assist reporting entities in implementing a standard related to disclosure of public-private partnerships.

According to a news release, TR 24: Implementation Guidance for SFFAS 49, Public-Private Partnerships, provides implementation guidance regarding challenges that practitioners have reported since 2016. That’s when the Statement of Federal Financial Accounting Standards (SFFAS) 49, Public-Private Partnerships: Disclosure Requirements was issued. The TR will ensure that integrated information is provided through concise, meaningful, and transparent disclosures; that disclosures are not duplicative;  and that financial reporting objectives are met while mitigating preparer burden, the news release said.

While the implementation guidance does not specifically address other types of federal activities, such as direct loans or loan guarantees, FASAB said in the release that it believes that reporting entities could consider the TR when applying SFFAS 34, The Hierarchy of Generally Accepted Accounting Principles, Including the Application of Standards Issued by the Financial Accounting Standards Board, to other types of P3 arrangements or transactions.

“This TR reflects FASAB’s commitment to work closely with the community in order to provide additional clarity and guidance to help reduce potential burden while increasing financial transparency concerning P3s,” FASAB Chair Monica R. Valentine said in the release.

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