GASB Renames the Annual Financial Report
The pronunciation of the acronym for the Comprehensive Annual Financial Report sounds like a profoundly objectional racial slur for South Africans. On October 19, 2021, GASB released Statement 98, which changes the name to the Annual Comprehensive Financial Report (ACFR) in generally accepted accounting principles (GAAP) for state and local governments and eliminates the prior name and acronym. No other changes were made to the report’s structure or content.
Financial reports prepared following GAAP are required to contain basic financial statements (including notes to financial statements) and required supplementary information (such as management’s discussion and analysis). Governments may voluntarily present those required components in an ACFR, which also contains more background and explanatory information from management, additional financial statements disaggregating certain columns in the basic financial statements, and a statistical section of 10-year trends in financial, economic, demographic, and operating information.
The change is effective for fiscal years ending after December 15, 2021. Early application is encouraged.
If you have questions about these changes, contact your BKD Trusted Advisor™ today.