Insights

< Back to Insights and Resources

GASB revises requirements for accounting changes and error corrections

ARTICLE | July 08, 2022

Authored by RSM US LLP


The Governmental Accounting Standards Board (GASB) has released Statement No. 100, Accounting Changes and Error Corrections (Statement 100), which amends GASB Statement No 62.

The revised and enhanced requirements of the new Statement are expected to improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, thereby providing more understandable, reliable, relevant, consistent and comparable information. The changes include:

  • Defining accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity
  • Describing the transactions or other events that constitute the “accounting changes,” including explaining when a change is justified
  • Prescribing the accounting and financial reporting for each type of accounting change, and for error corrections:
    • Changes in accounting principles and error corrections to be reported retroactively by restating prior periods
    • Changes to or within the financial reporting entity be reported by adjusting opening balances of the current period
    • Changes in accounting estimates to be reported prospectively by recognizing the change in the current period
  • Setting out the required disclosures in the notes to financial statements including:
    • ?Descriptive information about accounting changes and error corrections, such as information about their nature
    • The quantitative effects on beginning balances, for each accounting change and error correction, by opinion unit, in a tabular format to reconcile what was previously reported to the balances as restated
  • Addressing how information affected by a change in accounting principle or error correction should be presented in required supplementary information

The requirements of Statement 100 are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter, with earlier application encouraged.

Let's Talk!

Call us at +1 213.873.1700, email us at solutions@vasquezcpa.com or fill out the form below and we'll contact you to discuss your specific situation.

  • Topic Name:
  • Should be Empty:

This article was written by RSM US LLP and originally appeared on 2022-07-08.
2022 RSM US LLP. All rights reserved.
https://rsmus.com/insights/financial-reporting/gasb-revises-requirements-for-accounting-changes-and-error-corre.html

RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.

​Vasquez & Company LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.

Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.

For more information on how ​Vasquez & Company LLP can assist you, please call +1 213.873.1700.

Subscribe to receive important updates from our Insights and Resources.

  • Should be Empty: