Governmental Accounting Standards Update: 11/18/21

The Governmental Accounting Standards Board (GASB) has issued Statement No. 98, The Annual Comprehensive Financial Report (ACFR), to rename the report previously known as the Comprehensive Annual Financial Report (CAFR).

GASB stakeholders were made aware that the acronym CAFR, when spoken, sounded like a profoundly offensive term. The board unanimously approved the issuance of the Exposure Draft on April 7, 2021, and the Final Statement was issued on Oct. 11, 2021.

The name change has no impact on the preparation or format of the statements; however, the terminology will be updated throughout the American Institute of Certified Public Accountants’ (AICPA) auditing standards and other professional literature. The ACFR will contain the basic financial statements, including the notes to the financial statements, along with required supplementary information, which includes management’s discussion and analysis. Additional supplementary information may also be prepared and presented by management to accompany the basic financial statements.

The GASB has encouraged early adoption, with the Statement being effective for fiscal years ending after Dec. 15, 2021.