FASAB offers guidance on implementing federal MD&A

The Federal Accounting Standards Advisory Board issued staff implementation guidance Friday implementing its Management Discussion and Analysis standard from 2024, which replaces an earlier standard.

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Staff Implementation Guidance (SIG) 64.1, Guidance for Implementing SFFAS 64: Management’s Discussion and Analysis doesn’t establish any new requirements, but aims to help preparers implement Statement of Federal Financial Accounting Standards (SFFAS) 64, Management’s Discussion and Analysis: Rescinding and Replacing SFFAS 15.

After SFFAS 64 was issued on Sept. 27, 2024, FASAB committed to providing implementation training and guidance for reporting MD&A in accordance with SFFAS 64 for fiscal year 2026. The FASAB staff offered implementation training to more than 35 federal reporting entities to help them transition from the earlier SFFAS 15, Management’s Discussion and Analysis, to SFFAS 64. The staff also collected questions during those training courses to help develop the guidance in the new SIG 64.1.

“SIG 64.1 is an effective tool to help agencies implement SFFAS 64 by using question & answer guidance and providing examples,” said FASAB executive director Monica Valentine in a statement.