ARTICLE | August 26, 2022
Authored by RSM US LLP
The Governmental Accounting Standards Board (GASB) has released Concepts Statement No. 7, Communication Methods in General Purpose Financial Reports That Contain Basic Financial Statements: Notes to the Financial Statements. Concepts Statement No. 7 is one in a series of concepts statements that are intended to provide a conceptual framework for establishing consistent accounting and financial reporting standards.
Concepts Statement No. 7 supersedes paragraphs 35–39 of Concepts Statement No. 3, Communication Methods in General Purpose External Financial Reports That Contain Basic Financial Statements, which address the communication method of disclosures in the notes to the financial statements. This new Concepts Statement:
- Describes the purpose of notes to the financial statements
- Sets out criteria for disclosing information in the notes to the financial statements, including:
- The types of information to be disclosed
- The types of information that are not appropriate to disclose
- The degree of importance that information disclosed in the notes should have (i.e., the essential information), as well as characteristics of what makes information “essential”
The concepts set out in Concepts Statement No. 7 are intended to assist the GASB when it evaluates and develops new note disclosures. It is also intended that this Concepts Statement will assist preparers, auditors and other stakeholders in understanding the fundamental concepts underlying the disclosure requirements in future GASB pronouncements.
Do you have questions or want to talk?
Fill out the form below and we’ll contact you to discuss your specific situation.
This article was written by RSM US LLP and originally appeared on 2022-08-26.
2022 RSM US LLP. All rights reserved.
https://rsmus.com/insights/financial-reporting/gasb-issues-guidance-for-developing-note-disclosures.html
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
LaPorte is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources.
For more information on how LaPorte can assist you, please call 713.548.2034.