Federal Register: October 17, 2001 (Volume 66, Number 201)
DOCID: FR Doc 01-26164
FEDERAL ACCOUNTING STANDARDS ADVISORY BOARD
Federal Accounting Standards Advisory Board
NOTICE: NOTICES
ACTION: Reports and guidance documents; availability, etc.:
DOCUMENT ACTION: Notice of New Statement of Federal Financial Standards No. 21, Reporting Corrections of Errors and Changes in AccountingAmendment of SFFAS 7, Accounting for Revenue and Other Financing Sources.
SUBJECT CATEGORY:
Notice of Issuance of Statement of Federal Financial Accounting Standards
DOCUMENT SUMMARY:
Board Action: Pursuant to the Federal Advisory Committee Act (Pub.
L. No. 92463), as amended, and the FASAB Rules of Procedure, as
amended in October, 1999, notice is hereby given that the Federal
Accounting Standards Advisory Board has published a Statement of
Federal Financial Standards No. 21, Reporting Corrections of Errors and
Changes in Accounting PrinciplesAmendment to SFFAS 7, Accounting for
Revenue and Other Financing Sources. The Board approved the Statement
in December 2000, and submitted it to FASAB principles for a 90day review. The review period ended October 16, 2001.
A summary of the proposed Statement follows:
I. On October 16, 2001, the Federal Accounting Standards Advisory Board released Statement of Federal Financial Standards (SFFAS) No. 21, Reporting Corrections of Errors and Changes in Accounting PrinciplesAmending SFFAS 7, Accounting for Revenue and Other Financing Sources. The Chairman of the Federal Accounting Standards Advisory Board (FASAB) announced that the FASAB has issued a standard amending the reporting requirements for errors, discovered in the current year, that would have materially affected prior year financial statements. The amended standard required that adjustments be recognized as a change in cumulative results of operations (rather than as an element of net results of operations for the period) and that prior period financial statements not be restated for prior period adjustments recognized in the current period. The amendment requires that, when material errors are discovered in prior year financial statements, all statements presented must be restated to correct the error. The primary reason for the amendment is to allow reporting entities to present comparative statements. The Board has retained the requirement that prior period financial statements not be restated for changes in accounting principles, unless otherwise specified in the transition instructions section of a new FASAB standard. The language addressing the requirements, however, has been revised to improve clarity and to require certain disclosures.
II. The standards prescribed in SFFAS No. 21 are effective for periods beginning after September 30, 2001 with earlier
implementation encouraged. Hard copies of SFFAS No. 21 will be
mailed to FASAB's mailing list subscribers. Additionally, it will be in available on FASAB's home page
http://www.financenet.gov/fasab.htm. Copies can be obtained by
contacting FASAB at (202) 5127350, or palmera@fasab.gov.
SUMMARY:
Reporting corrections of errors and changes in accounting principles,
DOCUMENT BODY:
Board Action: Pursuant to the Federal Advisory Committee Act (Pub.
L. No. 92463), as amended, and the FASAB Rules of Procedure, as
amended in October, 1999, notice is hereby given that the Federal
Accounting Standards Advisory Board has published a Statement of
Federal Financial Standards No. 21, Reporting Corrections of Errors and
Changes in Accounting PrinciplesAmendment to SFFAS 7, Accounting for
Revenue and Other Financing Sources. The Board approved the Statement
in December 2000, and submitted it to FASAB principles for a 90day review. The review period ended October 16, 2001.
A summary of the proposed Statement follows:
I. On October 16, 2001, the Federal Accounting Standards Advisory Board released Statement of Federal Financial Standards (SFFAS) No. 21, Reporting Corrections of Errors and Changes in Accounting PrinciplesAmending SFFAS 7, Accounting for Revenue and Other Financing Sources. The Chairman of the Federal Accounting Standards Advisory Board (FASAB) announced that the FASAB has issued a standard amending the reporting requirements for errors, discovered in the current year, that would have materially affected prior year financial statements. The amended standard required that adjustments be recognized as a change in cumulative results of operations (rather than as an element of net results of operations for the period) and that prior period financial statements not be restated for prior period adjustments recognized in the current period. The amendment requires that, when material errors are discovered in prior year financial statements, all statements presented must be restated to correct the error. The primary reason for the amendment is to allow reporting entities to present comparative statements. The Board has retained the requirement that prior period financial statements not be restated for changes in accounting principles, unless otherwise specified in the transition instructions section of a new FASAB standard. The language addressing the requirements, however, has been revised to improve clarity and to require certain disclosures.
II. The standards prescribed in SFFAS No. 21 are effective for periods beginning after September 30, 2001 with earlier
implementation encouraged. Hard copies of SFFAS No. 21 will be
mailed to FASAB's mailing list subscribers. Additionally, it will be in available on FASAB's home page
http://www.financenet.gov/fasab.htm. Copies can be obtained by
contacting FASAB at (202) 5127350, or palmera@fasab.gov.
FOR FURTHER INFORMATION CONTACT
Wendy Comes, Executive Director, 441 G St., NW., Room 6814, Washington, DC 20548, (202) 5127350, or Andrea Palmer at (202) 5127360.
Authority: Federal Advisory Committee Act, Pub. L. No. 92463.
Dated: October 16, 2001.
Wendy M. Comes,
Executive Director.
[FR Doc. 0126164 Filed 101601; 8:45 am]
BILLING CODE 161001M