GASB proposes implementation guidance for financial reporting model improvements

The Governmental Accounting Standards Board released a proposed Implementation Guide Wednesday with questions and answers on the requirements related to subsidies in Statement No. 103, “Financial Reporting Model Improvements.”

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The proposed implementation guidance on “Financial Reporting Model Improvements — Subsidies” includes eight new questions and answers that address the application of GASB requirements under Statement 103 related to subsidies. The proposed guide also includes amendments to Question 4.5 in Implementation Guide No. 2025-1, Implementation Guidance Update — 2025, also related to subsidies.

GASB sometimes issues new and updated guidance to assist state and local governments in applying U.S. 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 GASB staff receives throughout the year; as well as topics identified by members of the Governmental Accounting Standards Advisory Council and other stakeholders.

The guidance in the implementation guides is cleared by the board and is considered to be “Category B GAAP,” which is authoritative.

GASB is asking its stakeholders to review the proposal and provide input by April 27, 2026. The comments can be submitted either in writing and addressed to the Director of Research and Technical Activities, who can be emailed at director@gasb.org, or through an electronic input form.