GASB Mulls Disclosures on Going Concern and Debt by State and Local Governments
The GASB – Government Accounting Standards Board has decided to create research on improvement of the disclosures about going concern and debt by the state and local governments.
In an associated action, on Thursday GASB also decided to get rid of a past plan it had considered on financial situation coverage and economic protrusions from the board’s existing technological program.
The board decided to begin investigation on going concern disclosures that depend on the feedback of the shareholders, who advised that Government Accounting Standards Board should scrutinize the significance of the “going concern” conception as it relates to governments organizations and government itself. In recent years, some local governments like Mich, Calif, Detroit,and Stockton have announced bankrupt, due to this, governments infrequently go out of business.
The going concern investigation will spotlight on whether existing GAAP standards offer local and state government financial statement creates with sufficient supervision about management’s accountabilities for assessing and revealing ambiguities connected with harsh financial pressure.
In 2012, the financial state project which related to economic coverage requirements associated to financial projection was place on hold and has not been put on discussions since.
In a statement, David A. Vaudit – GASB chairperson said, “The effort and reactions we got from shareholders on the beginning observations, on economic circumstances treatment was extremely precious and will probably serve to notify our effort in the future together with the investigation the panel has described for on the topic of going concern disclosures.
Both debt disclosure and going concern supervisions were acknowledged as high preferences by the members of the GASAC - Governmental Accounting Standards Advisory Council at their March 2015 meeting. For more information about the latest pre-agenda investigation actions, visit the GASB official website.