GASB Updates Accounting Hierarchy
On June 29, 2015, the Governmental Accounting Standards Board (GASB) issued Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, which supersedes GASB Statement No. 55. The hierarchy of generally accepted accounting principles (GAAP) prioritizes the guidance state and local governments follow when preparing financial statements in accordance with GAAP. The new standard is intended to improve the usefulness of financial statements for decision making and enhance the comparability of financial statement information among governments. The standard is effective for periods beginning after June 15, 2015, and should be retroactively applied. Earlier application is permitted.