Cities, States Get Fresh Subsequent Event Accounting Guidance

State and local governments have revamped rules on how to report events like certain debt-related transactions or the bankruptcy of a major customer that happen after the date of their financial reports.

The Governmental Accounting Standards Board issued guidance Wednesday to improve rules for subsequent events, which are transactions or other events that happen after the close of a financial reporting period but before those statements are issued. The requirements are effective for fiscal years beginning after June 15, 2026, with early application encouraged.

GASB establishes accounting standards for US state and local governments that follow generally accepted accounting principles, ...