(An exposure draft is scheduled for release in mid-2023, suggesting that a final standard may be released by 2024.) Major GASB projects take years to complete, offer several due process documents for public comment (Invitation to Comment, PV, and Exposure Draft), include public hearings, have multiple educational events, and involve participation of governmental entities in field testing the Board’s preliminary views. The project appears to be at the half-way mark, with comments on a Preliminary Views (PV) document due February 26. Revenues and expenses must be evaluated independently based on the underlying characteristics of each transaction, and recognition in the appropriate reporting period is critical to the assessment of accountability by helping users understand whether revenues in a reporting period sufficiently cover expenses for that same period. One noteworthy principle: When it comes to revenues and expenses, the accountability concept of inter-period equity is paramount. GASB would like to ensure that all transactions are addressed. The reason: there is currently limited guidance along a continuum with pure exchange transactions on one end and non-exchange on the other. The goal: a principles-based comprehensive model that can handle all types of revenue and expense transactions. The Governmental Accounting Standards Board (GASB) has been working on a major project since 2016: revenue and expense recognition. In this article, Sharon Heinle shares insights from her field text experience. Part of GASB’s revenue and expense recognition project includes involving institutions in field testing. Sharon Heinle, Associate Vice President and Controller, George Mason University Chair NACUBO Accounting Principles Council
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