GASB issued an Invitation to Comment to seek feedback to assist in developing a revenue and expense recognition model for state and local governments. Two potential models are discussed in the Invitation. The first is an exchange/nonexchange model and the second is a performance obligation/no performance obligation model.
This Invitation to Comment lays out potential paths for establishing comprehensive guidance for revenue and expense transactions. Stakeholder feedback on potential benefits and challenges of the two models will be considered when potential changes to standards for future input. Comments may be emailed to director@gasb.org.
VACo Contact: Vicky Steinruck, CPA