The Governmental Accounting Standards Board (GASB) has issued Statement No. 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards. This Statement incorporates accounting and financial reporting guidance previously contained in the American Institute of Certified Public Accountants (AICPA) auditing literature into the GASB’s accounting and financial reporting literature for state and local governments. Statement No. 56 addresses three issues from the AICPA’s literature - related party transactions, going concern considerations, and subsequent events. The Statement brings existing guidance without substantive changes into the GASB’s body of standards, as appropriate for governmental entities. Statement No. 56 was effective immediately upon issuance.
|
