States, Cities to Get Guidance on Financial Footnotes

The accounting rulemaker for state and local governments on Friday issued a proposal outlining the types of information that should be included in the footnotes of state, county, and city financial statements.

The Governmental Accounting Standards Board made the proposal to help it draft consistent, well-reasoned standards for the financial information that government bodies convey to taxpayers, creditors, and government watchdogs.

Footnotes should include information that helps financial statement readers make useful decisions or assess the accountability of a government, according to the proposal. Details also should be included if the information could make taxpayers, creditors, or watchdogs modify ...