FASAB proposal seeks clearer materiality guidance

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FASAB proposal seeks clearer materiality guidance

The Federal Accounting Standards Advisory Board (FASAB) is asking for public comment on a proposal to clarify the implementation of materiality concepts in the issuance of federal financial statements.

A proposed Statement of Federal Financial Accounting Concepts (SFFAC) titled Materiality, issued Monday by FASAB, would (1) provide materiality concepts, (2) specify the scope of materiality,

and (3) list factors to consider when applying materiality.

“The intent is for clearer materiality guidance to improve the understanding and comprehension of federal financial reports by financial statement users,” FASAB Chairman Scott Showalter said in a news release.

Comments on the exposure draft are due by Jan. 23, 2019. FASAB is encouraging respondents to view the exposure draft and respond to specific questions contained in the document. The ED and the questions are available on the FASAB website at fasab.gov/documents-for-comment.

Jeff Drew (Jeff.Drew@aicpa-cima.com) is a JofA senior editor.

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