The GASB has issued an Exposure Draft entitled GASB Implementation Guidance Update – 2021. The GASB periodically issues implementation guidance to assist practitioners in implementing GASB Statements and to answer frequently asked questions. The implementation guidance takes the form of questions and answers on a variety of governmental accounting topics. The GASB generally issues an update to the implementation guidance each year, which contains new or revised questions and answers derived from questions the GASB has received or implementation issues that the GASB has observed.
Previously, the GASB would simply issue the implementation guidance without first exposing it for public comment. However, GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, changed the hierarchy of governmental GAAP such that GASB Implementation Guides are now considered Category B GAAP, one level below GASB Statements, which are considered Category A GAAP. As a result of this elevation of Implementation Guides to a higher level of GAAP, all GASB Implementation Guides issued subsequent to GASB Statement No. 76 becoming effective have been exposed for public comment.
The draft Implementation Guidance issued by the GASB contains new or revised questions and answers on the following topics:
- Accounting And Financial Reporting For Derivative Instruments
- Fiduciary Activities
- Accounting And Financial Reporting For Nonexchange Transactions
- Basic Financial Statements And Management’s Discussion And Analysis
- Sales And Pledges Of Receivables And Future Revenues
Most of the requirements of the Implementation Guidance are effective for fiscal years beginning after June 15, 2022, although the guidance in question 4.27 regarding potential short-term leases in effect upon the adoption of GASB Statement No. 87 is effective for periods beginning after June 15, 2021. Earlier application is permitted if the pronouncement addressed by the question and answer has been implemented. Comments on the Exposure Draft must be submitted by February 15, 2021.
The full text of the Exposure Draft is available here.
Readers should not act upon information presented without individual professional consultation.