![]() ![]() The Board reviewed and discussed the preballot draft of a final Statement and agreed to proceed to a ballot draft. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The Board voted on the ballot draft and unanimously agreed to the issuance of Statement No. The redeliberations based on the comments received may take place at the December Board meeting (rather than the March 2009 meeting), if time permits, accelerating the preballot and ballot draft review sessions accordingly. Approximately 32 letters were received, most of which generally supported the ED as proposed. The ED was issued August 28, 2008, with a comment period ending October 30, 2008. The Board reviewed a preballot draft of the proposed standard at the July meeting and met with the FASAB in August to discuss the ballot draft and approve it for issuance. The project prospectus (for the combined project) was discussed by the Governmental Accounting Standards Advisory Council (GASAC) at its March 2008 meeting (highly rated by the GASAC), and a revised prospectus was presented to the Board for consideration to be added to the active agenda at the April 2008 meeting.Īccounting and Financial Reporting Issues: The primary issue is analyzing the contents of the existing hierarchy levels to determine (a) if the structure should be incorporated into the GASB’s literature essentially “as is,” or (b) whether the standards-setting process and the governmental financial reporting environment have sufficiently evolved since the establishment of the hierarchy to warrant reconsideration or reconfiguration of certain aspects of the structure. ![]() The staff presented the results of research and initial recommendations regarding the proposed direction of the project in December 2007. The hierarchy issue was initially included in the broader AICPA Omnibus project, but was separated in preparation for the July 2008 Board meeting so that the GASB and the Federal Accounting Standards Advisory Board (FASAB) could address the issue in a joint project. The selection of principles used in the preparation of financial statements would more appropriately be addressed in accounting and financial reporting standards rather than the auditing literature. ![]() Because the GAAP hierarchy currently resides in the professional auditing literature it is directed to the auditor rather than the governmental entities themselves. The GAAP hierarchy currently is contained in the American Institute of Certified Public Accountants’ (AICPA) professional auditing literature in Statement of Auditing Standards (SAS) No. 69, The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles.īackground: Representatives of the AICPA have stated that they would like the standards setters to consider adopting standards for accounting and financial reporting issues (including the GAAP hierarchy) that now only reside in the SASs. Project Description: This project will incorporate into the GASB’s authoritative literature the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements of state and local governmental entities that are presented in conformity with generally accepted accounting principles (the GAAP hierarchy). ![]() GASB Issues an Exposure Draft, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments.55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, was approved in March 2009. The GAAP hierarchy currently is contained in the American Institute of Certified Public Accountants’ (AICPA) professional auditing literature in Statement of Auditing Standards (SAS) No. 69, The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles. Primary Objective:The objective of this project is to incorporate into the GASB’s authoritative literature the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements of state and local governmental entities that are presented in conformity with generally accepted accounting principles (the GAAP hierarchy). Hierarchy of Generally Accepted Accounting Principles (GAAP Hierarchy) ![]()
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