GASB issued an Invitation to Comment to seek feedback to assist its efforts to develop a revenue and expense recognition model for state and local government accounting. The objectives for the model are:
- To create a more robust framework to address a wide range of transactions.
- To improve the comparability of how transactions are accounted for and reported by governments.
- To provide more useful information to users of financial reports.
Two potential models are discussed in the invitation. An exchange/nonexchange model would include a classification process based on the existing definition for exchange transactions. The other would be a performance obligation/no performance obligation model to include a tentative definition of a performance obligation. Comments can be emailed to director@gasb.org. Public hearings are scheduled for May.
VACo Contact: Vicky Steinruck, CPA