States, Cities Get Fresh Guidance on Fixing Accounting Errors

States, cities, and other local governments now have clearer rules on how to correct accounting errors or make accounting changes under updated rules from the Governmental Accounting Standards Boards released Monday.

GASB Statement No. 100 aims to provide more straightforward guidance on how governments correct errors in previously issued financial statements as well as how to make changes to accounting principles and accounting estimates. Changes to and within the government’s financial reporting must be reported by adjusting beginning balances of the current period, GASB said.

• The changes are designed to “lead to information that is easier to understand and more ...