The Governmental Accounting Standards Board is asking for stakeholder feedback on a proposed Implementation Guide, which features questions and answers that are intended to clarify, explain, or elaborate on the requirements related to subsidies in Statement No. 103, Financial Reporting Model Improvements.
The GASB periodically issues new and updated guidance to assist state and local governments in applying GAAP to specific facts and circumstances that they encounter.
The guidance is developed based on:
- Application issues raised during due process on GASB pronouncements.
- Questions the staff receives throughout the year.
- Topics identified by stakeholders and members of the Governmental Accounting Standards Advisory Council, which advises the GASB on issues related to projects on the board’s agenda, possible new agenda items, project priorities, and other matters.
The guidance in Implementation Guides is cleared by the board and constitutes Category B GAAP, which is authoritative, the GASB said.
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The proposed implementation guidance on financial reporting model improvements, which was released on Feb. 25, contains eight new Q&As that address the application of GASB requirements under Statement 103 related to subsidies.
The requirements of this Implementation Guide apply to proprietary fund financial statements of all state and local governments and the financial statements of all state and local government business-type activities, the GASB said.
The proposed guide also includes amendments to Question 4.5 in Implementation Guide No. 2025-1, Implementation Guidance Update—2025, also related to subsidies.
Stakeholders are asked to review the proposal and provide comments to the GASB by April 27, 2026.
Comments may be submitted either in writing and addressed to the director of research and technical activities, who may be emailed at director@gasb.org, or through an electronic input form.
Photo credit: Financial Accounting Foundation
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