The US Governmental Accounting Standards Board (GASB) is seeking feedback on a Discussion Memorandum on how generally accepted accounting principles (GAAP) for US state and local governments should be structured and communicated.
The document, titled the Structure for Communicating Generally Accepted Accounting Principles for State and Local Governments, is intended to gather input at an early stage.
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It forms part of the GASB’s pre-agenda research on the topic and does not set out its preliminary views. However, the document is intended to inform the board’s consideration on whether to initiate a technical agenda project to move to a single-authority structure for government GAAP.
According to the GASB, the research is aimed at assessing how effective the current dual-authority model is and whether a shift to a single-authority structure should be considered.
It also looks at how such a model could be put into practice if pursued.
Under the existing system, GAAP are contained in two sources that share the same level of authority: Original Pronouncements, including GASB Statements and Implementation Guides, and the Codification.
In responses to other GASB due process documents, some stakeholders have questioned the dual-authority structure and called for a single, consolidated set of GAAP, drawing comparisons with the FASB Accounting Standards Codification.
The GASB notes that the process of issuing new standards and revising earlier requirements has made both the use and upkeep of the dual structure increasingly complicated.
An earlier phase of the pre-agenda research examined how stakeholders interact with GASB materials and how the dual framework is maintained.
On the basis of that earlier work, the current phase is considering whether a single-authority approach should be pursued and, if so, what shape a future structure might take.
The GASB emphasises that this research is not intended to result in changes to existing accounting and financial reporting requirements. Instead, it concentrates on how GAAP are presented and maintained.
Stakeholders are asked to review the Discussion Memorandum and provide comments to the GASB by 31 August 2026.
