Draft: accounting and reporting of derivatives.
GASB GASB Governmental Accounting Standards Board has issued for comment a proposal on the accounting and financial reporting of derivatives derivatives
In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. by state and local governments.
The proposal requires that the fair value of derivatives, as well as any change in that fair value, be reported in financial statements. The proposal also would require governments to disclose additional information about their derivatives in the notes to the financial statements Notes to the financial statements
A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements. .
Comments are due July July: see month. 28.
For more, visit www.gasb.org/news/nr042806.html.
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