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GASB proposes major overhaul of guidance

The Governmental Accounting Standards Board (GASB) is proposing a significant change to the structure of guidance on U.S. GAAP for state and local governments, aiming for a unified approach similar to FASB's. The discussion memorandum titled "The Structure for Communicating Generally Accepted Accounting Principles for State and Local Governments" invites stakeholder feedback before GASB finalizes its stance. The goal is to assess the effectiveness of the current dual-authority structure, which complicates the maintenance of GAAP as more standards are issued. GASB is exploring whether to adopt a single-authority structure, with input requested by August 31, 2026. As stated in the memo, "the focus instead will be on considering how GAAP is communicated and maintained."

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