GASB to Issue Debt Disclosures Exposure Draft
An Exposure Draft by the Governmental Accounting Standards Board (“GASB”) is on the way covering debt disclosures. The Exposure Draft, Debt Disclosures, including Direct Borrowing, addresses concerns over the consistency of direct borrowing disclosures by government entities. As a result, the GASB has proposed a definition of “debt” to differentiate it from other long-term liabilities in the footnotes of financial statements.
The Exposure Draft is expected to be approved later this month, and will have a 90-day comment period. A final GASB Statement is scheduled for next spring.