Response to the GASB Discussion Document ‘Invitation to Comment: Governmental Financial Reporting Model

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American Accounting Association

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Accounting Horizons

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This article presents the American Accounting Association's comment to the Governmental Accounting Standards Board (GASB) discussion document Invitation to Comment: Governmental Financial Reporting Model. The current financial reporting model for state and local governments displays fund-type data in multiple columns. Fund-types apply different measurement focuses and different bases of accounting depending on their legal and/or budgetary perspective. The GASB Invitation to Comment (ITC) addresses issues relating to the display and disclosure requirements for external general purpose financial statements of state and local governments. The ITC presents the framework for the basic financial statements of two reporting model alternatives and the underlying objectives and features of each model. One of the primary objectives of the ITC is to stimulate debate on the levels of reporting and the extent of aggregation appropriate for state and local government financial reporting. The two models suggested in the ITC offer differing displays of potential aggregation. A central issue in the ITC involves what measurement focus and basis of accounting to adopt for governmental activities.


Accounting Horizons, Vol. 9, No. 3 (September 1995): 111-118. Publisher link.