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<br /> <br />Future Accounting Standard Changes (Continued) <br /> <br />GASB Statement No. 100 - Accounting Changes and Error Corrections - an amendment of GASB Statement No. 62 <br /> <br />Summary <br /> <br />The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting <br />changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information <br />for making decisions or assessing accountability. <br /> <br />This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and <br />changes to or within the financial reporting entity and describes the transactions or other events that con stitute those <br />changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in <br />accounting estimates that result from a change in measurement methodology, a new principle or methodology should be <br />justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should <br />be based on the qualitative characteristics of financial reporting —understandability, reliability, relevance, timeliness, <br />consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial <br />statements. <br /> <br />This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error <br />corrections. This Statement requires that (a) changes in accounting principles and error corrections be reported <br />retroactively by restating prior periods, (b) changes to or within the financial reporting entity be reported by adjusting <br />beginning balances of the current period, and (c) changes in accounting estimates be reported prospectively by <br />recognizing the change in the current period. The requirements of this Statement for changes in accounting principles <br />apply to the implementation of a new pronouncement in absence of specific transition provisions in the new <br />pronouncement. This Statement also requires that the aggregate amount of adjustments to and restatements of <br />beginning net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the fi nancial <br />statements. <br /> <br />This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes <br />and error corrections, such as their nature. In addition, information about the quantitative effects on beginning balances <br />of each accounting change and error correction should be disclosed by reporting unit in a tabular format to reconcile <br />beginning balances as previously reported to beginning balances as restated. <br /> <br />Furthermore, this Statement addresses how information that is affected by a change in accounting principle or error <br />correction should be presented in required supplementary information (RSI) and supplementary information (SI). For <br />periods that are earlier than those included in the basic financial statements, information presented in RSI or SI should be <br />restated for error corrections, if practicable, but not for changes in accounting principles. <br /> <br />Effective Date and Transition <br /> <br />The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years <br />beginning after June 15, 2023, and all reporting periods thereafter. Earlier application is encouraged. <br /> <br />How the Changes in This Statement Will Improve Accounting and Financial Reporting <br /> <br />The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for <br />accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more <br />understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users <br />for making decisions or assessing accountability. In addition, the display and note disclosure requirements wil l result in <br />more consistent, decision useful, understandable, and comprehensive information for users about accounting changes <br />and error corrections. <br /> <br />10 215