GASB proposed changes Tuesday, June 1, to its accounting and financial reporting guidance for accounting changes and error corrections that has been in effect for more than 40 years.
GASB established in the 1970s the current requirements for state and local government financial reporting on accounting changes and error corrections, which were later codified in 2010. In researching the standard, GASB identified diversity in the application of the existing standards in practice, including issues with selecting the appropriate category of accounting change or error correction.
The GASB proposal intends to make the information more understandable, reliable, relevant, consistent and comparable across governments. The proposal addresses several categories related to accounting change or error correction. Read more.