Norwalk, CT, April 11, 2005—The Governmental Accounting Standards Board (GASB) has issued Concepts Statement No. 3, Communication Methods in General Purpose External Financial Reports That Contain Basic Financial Statements. The purpose of the Concepts Statement is to provide a conceptual basis for selecting communication methods to present items of information within general purpose external financial reports that contain basic financial statements. These communication methods include recognition in basic financial statements, disclosure in notes to basic financial statements, presentation as required supplementary information (RSI), and presentation as supplementary information.
The Concepts Statement defines the communication methods commonly used in general purpose external financial reports, develops criteria for each communication method, and provides a hierarchy for their use. The definitions, criteria, and hierarchy should help the GASB or, in the absence of authoritative guidance, a preparer of a financial report determine the appropriate methods to use to communicate an item of information. Greater consistency within the comparability among governments in the use of communication methods ultimately should result in the more efficient and effective use of financial reports. The Concepts Statement (Product Code GC03) can be ordered through the GASB’s order department at 800-748-0659 or via its website at www.gasb.org.
About the Governmental Accounting Standards Board
The GASB is the independent, not-for-profit organization formed in 1984 that establishes and improves financial accounting and reporting standards for state and local governments. Its seven members are drawn from the Board's diverse constituency, including preparers and auditors of government financial statements, users of those statements and members of the academic community. More information about the GASB can be found at its website www.gasb.org.