FSR Insights: GASB issues final guidance on accounting on nonexchange financial guarantees

September 2013
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FSR Insights: GASB issues final guidance on accounting on nonexchange financial guarantees

At a glance

The Government Accounting Standards Board (GASB) published the final guidance on on April 30, 2013, about Accounting and Financial Reporting for Nonexchange Financial Guarantee Transactions in the form of GASB Statement No. 70 (“GASB No. 70”).

On April 30, 2013, the Government Accounting Standards Board (GASB) published the final guidance on Accounting and Financial Reporting for Nonexchange Financial Guarantee Transactions in the form of GASB Statement No. 70 (“GASB No. 70”).

The GASB believes that a comprehensive standard is needed for the recognition and disclosure of financial guarantees that could lead to creditor claims. The disclosures will provide investors with information to better assess the probability that governments will repay the debt holders.