Accounting Board Opens Government Financial Strain Plan to Input

The US accounting standard-setter for local governments is asking for feedback on its effort to improve financial reporting rules for states and cities with dire financial troubles.

Government officials, municipal bond insurers, rating agencies, and watchdog groups can comment on the Governmental Accounting Standards Board’s early-stage project, released Monday. The board voted to issue the plan at a March 19 meeting.

The “preliminary views” document sets out the board’s early thinking on issues associated with governments’ disclosures of severe financial distress and probable dissolution.

• The financial reporting guidance for severe financial distress would center on governments’ condition, regardless of whether ...