FMSB Comments on Two GASB Exposure Drafts

AGA's Financial Management Standards Board (FMSB) has issued a comment letter on two Exposure Drafts of the Governmental Accounting Standards Board (GASB): Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards and The Hierarchy of Generally Accepted Accounting Principles for State and Local Government. The FMSB believes that moving the hierarchy of Generally Accepted Accounting Principles from the auditing literature to a GASB statement is a wise decision and one that is especially appropriate in light of the Financial Accounting Standards Board codification project and the convergence of international with national standards. Including in GASB guidance the three issues discussed in the codification Exposure Draft--related party transactions, subsequent events and going concern considerations--would help to more appropriately place presentation of principles used in the preparation of financial statements in accounting and financial reporting standards, the FMSB stated.

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