AICPA Provides Feedback to GASB on Measurement Proposal
Published November 26, 2013
In an effort to enhance the Governmental Accounting Standards Board (GASB) conceptual framework, the GASB issued an Exposure Draft, Measurement of Elements of Financial Statements. This project considers the measurement approach or approaches (for example, initial amounts or remeasured amounts) that conceptually should be used in governmental financial statements and measurement attributes (the feature of the assets or liabilities that is measured).
In its September 25, 2013 letter, the American Institute of CPAs’ State and Local Government Expert Panel expressed its overall support for the concepts proposed in the Exposure Draft and the GASB’s efforts to provide a conceptual framework for measurement that can be used as a basis for establishing consistent financial reporting standards.
The Panel agreed with the Board’s proposed measurement approaches (such as initial amount and remeasured amount) and attributes (such as historical cost, fair value, replacement cost and settlement amount). The Panel also took the opportunity to reiterate its concerns (expressed in prior due process efforts on this project) regarding the GASB’s related conceptual project on recognition of elements of financial statements.