MEDIA ADVISORY 09/18/12

September 28 Is the Deadline for Comment on GASB’s Proposal on Financial Guarantees for State and Local Governments

Norwalk, CT, September 18, 2012—Parties interested in submitting written comments on the Governmental Accounting Standards Board (GASB) Exposure Draft, Accounting and Financial Reporting for Nonexchange Financial Guarantee Transactions, should file comment letters by Friday, September 28, 2012.

The proposed Statement would require a state and local government guarantor that offers a nonexchange financial guarantee to another organization or government to recognize a liability on its financial statements when it is “more likely than not” that the guarantor will actually make a payment to the obligation holders under the agreement. It would also require note disclosures of the risks associated with those guarantees.

Individuals and organizations are urged to review the Exposure Draft and provide written comments by the September 28, 2012 deadline. Comments should be addressed to the Director of Research and Technical Activities, Project No. 19-18, and emailed to director@gasb.org or mailed to the following address:

Governmental Accounting Standards Board
401 Merritt 7
PO Box 5116
Norwalk, CT 06856-5116


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.