OFA Bill Analysis

HB 5839

AN ACT CONCERNING THE IMPLEMENTATION OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP).

SUMMARY:

The bill allows the Comptroller, beginning FY 09, to apply in whole or in part, Governmental Accounting Standards Board (GASB) standards pertaining to GAAP in order to address the state's current GAAP deficit. The bill deletes the current law requirement that adopts GAAP principles beginning in FY 10 and amortizes the GAAP deficit over 15 years beginning in FY 11.

EFFECTIVE DATE: July 1, 2008

BACKGROUND

Governmental Accounting Standards Board (GASB)

GASB is an independent, private-sector, not-for-profit organization that establishes standards of financial accounting and reporting for U. S. state and local governments. Governments and the accounting industry recognize GASB as the official source of GAAP for state and local governments.

COMMITTEE ACTION

Appropriations Committee

Joint Favorable