Prior to the issuance of GASB Statement No. 100, accounting changes and error corrections were covered in GASB Statement No. 62: Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. As noted in the title, that GASB standard essentially followed guidance that was in place in 1989 from the FASB and the AICPA. Since that time, various standards related to accounting changes and error corrections have been updated, but the GASB has not implemented corresponding updates. The lack of detail and specifics in the GASB guidance resulted in treatment of accounting changes and error corrections that was inconsistently applied between entities and omitted information that could be useful to readers to understand the context of the accounting change or error correction.

In response to that need, the GASB issued Statement No. 100, Accounting Changes and Error Corrections, which amends language in GASB Statement No. 62 and provides additional information around accounting changes and error corrections. Examples of some of the prescribed elements are that changes in accounting principles and error corrections would be reported retroactively by restating prior periods, changes to or within the financial reporting entity would be reported by adjusting beginning balances of the current period, and changes in accounting estimates would be reported prospectively by recognizing the change in the current period. The requirements of Statement No. 100 for changes in accounting principles apply to the implementation of a new pronouncement in the absence of specific transition provisions in the new pronouncement. Statement No. 100 also requires displaying the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position, as applicable, to be displayed by reporting unit in the financial statements. The notes to the financial statements are also required to have descriptive information about accounting changes or error corrections. Additionally, Statement No. 100 considers the requirements for presenting information in the required supplementary information and supplementary information.

The requirements of Statement No. 100 are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. Earlier application is encouraged.

The full text of Statement No. 100 is available here.

^{Readers should not act upon information presented without individual professional consultation.}