GASB Preliminary Views
The GASB has issued two preliminary views documents for public comment. Preliminary views documents are issued in advance of a final statement/standard. These two preliminary views documents relate to improving the financial reporting model and recognition of elements in the financial statements and could have a significant impact on the existing financial reporting model utilized by governmental entities.
The goal of the financial reporting model preliminary views document is to improve financial reporting by enhancing comparability and understandability in financial reporting by state and local governments in several ways, as well as by providing additional decision useful information. GASB is reviewing the format of the statement of activities. In addition, for governmental funds, GASB is considering a conceptually consistent measurement focus and basis of accounting in order to develop a presentation format for governmental fund financial statements. Other proposed changes could impact budgetary comparison information, proprietary fund statements, and MD+A.
The goal of the elements in the financial statements preliminary reviews document is to improve financial reporting by augmenting the framework through which the GASB can enhance consistency in future standards setting. This will be accomplished through the measurement focus of a specific financial statement to determine what items should be reported as elements of that financial statement and the related basis of accounting to determine when those items should be reported.
This change would mostly impact the recognition of transactions for governmental funds.