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Commonwealth's Counties

Financial Facts

GASB has issued a proposed concepts statement that would establish new criteria for state and local governments to follow in developing disclosures for notes to financial statements. The exposure draft, Communication Methods in General Purpose External Financial Reports That Contain Basic Financial Statements: Notes to Financial Statements, describes information that should be disclosed in notes and types of information that are not appropriate for note disclosure.

GASB proposes that certain characteristics distinguish information that is essential to users in making decisions or assessing accountability. The characteristics are:

  • The information is currently being utilized in users’ analyses for making decisions assessing accountability
  • The information would be utilized if it became available

Preparers and auditors will be able to use the concepts when they are finalized to apply the GAAP hierarchy to assess whether certain information should be included in notes when GASB does not provide authoritative guidance.

VACo Contact: Vicky Steinruck, CPA

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