GASB Requests Public Input on Revenue and Expense
Norwalk, CT, February 1, 2018—The
Governmental Accounting Standards Board (GASB) has issued for public feedback an
to Comment (ITC) on the development of a comprehensive revenue and expense
recognition model for state and local governments.
The GASB’s objectives
in developing a comprehensive model are:
The ITC, Revenue and
Expense Recognition, discusses two models: an exchange/nonexchange model,
and a performance obligation/no performance obligation model.
- To create a more robust framework to address a wide range of transactions,
including some for which no guidance exists at present
- To improve the comparability of how transactions are accounted for and
reported by governments
- To provide more useful information to users of financial reports for
making decisions and assessing accountability.
exchange/nonexchange model includes a classification process based on the
existing definition for exchange transactions. The recognition process in this
model would be based on existing guidance for nonexchange transactions and a
standardized recognition approach for exchange transactions.
performance obligation/no performance obligation model includes a classification
process based on a tentative definition of a performance obligation. That
recognition process would retain existing guidance for transactions without a
performance obligation but also would apply a structured recognition approach
for transactions classified as containing a performance obligation.
Invitation to Comment lays out potential paths forward for establishing
comprehensive guidance for revenue and expense transactions,” said David A.
Vaudt, GASB chairman. “The Board needs stakeholder feedback on the potential
benefits and challenges of the two models before it begins to develop potential
changes to the standards for future input.”
As a staff document, the ITC
does not contain a Board proposal to pursue either model. It is intended to
obtain feedback from stakeholders at an early stage of the project before
deliberations over new or revised standards begin.
Interested parties are
asked to review and provide input on the document by April 27, 2018. Written
comments should be addressed to the Director of Research and Technical
Activities, Project No. 4-6I, and either emailed to email@example.com or
mailed to the GASB, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116.
series of public hearings on the ITC
are scheduled as follows:
Additional information about the locations of the public
hearings is available in the ITC. The deadlines for written notice of intent to
participate in the public hearings are April 13, 2018, for the May 6 public
hearing and April 27, 2018, for the May 18 and 30 public
- May 6, 2018, in St. Louis, MO (in conjunction with the annual conference
of the Government Finance Officers Association)
- May 18, 2018, in Burlingame, CA (near San Francisco airport)
- May 30, 2018, in Norwalk, CT (at the Financial Accounting Foundation
About the Governmental Accounting Standards
Established in 1984, the GASB is the independent,
private-sector organization based in Norwalk, Connecticut, that establishes
accounting and financial reporting standards for U.S. state and local
governments that follow Generally Accepted Accounting Principles (GAAP). These
standards are recognized as authoritative by state and local governments, state
Boards of Accountancy, and the American Institute of CPAs (AICPA). The GASB
develops and issues accounting standards through a transparent and inclusive
process intended to promote financial reporting that provides useful information
to taxpayers, public officials, investors, and others who use financial reports.
The Financial Accounting Foundation (FAF) supports and oversees the GASB. For
more information, visit http://www.gasb.org/.