GASB Reconsiders Accounting Change & Error Correction Guidance
On June 1, 2021, GASB issued proposed updates to guidance on accounting changes and error correction. The updates define the following categories to provide additional clarity for financial statement preparers: changes in accounting principles, changes in accounting estimates, changes to or within the financial reporting entity, and corrections of errors in previously issued financial statements. The updates also establish accounting and financial reporting guidance for each category, including financial statements display, note disclosures, and presentation in required supplementary information and supplementary information. This article provides details on the changes, which GASB believes will lead to more consistent reporting between governments and more useful information for financial statement users.