Financially distressed cities, states, and local governments may have to put better warnings in their financial statements about their ability to continue as going concerns, the Governmental Accounting Standards Board said Thursday.
The accounting standard-setter for government entities laid out its plan to develop rules for this type of warning, which companies reveal when they have “substantial doubt” about their ability to stay afloat over the next 12 months.
GASB will tackle the issue in the first third of this year, it said.
- There is no specific state and local accounting guidance on going concern disclosures, GASB said. GASB Statement ...