The New Face of Government Balance Sheets

Illustrating the Changes under GASB Statements 63 and 65

Craig D. Shoulders, PhD, and Joseph P. Lakatos, JD, LLM, CFE

Major changes are coming to state and local government financial statements. Two recently issued Governmental Accounting Standards Board (GASB) pronouncements—GASB Statement 63, Financial Reporting of Deferred Outflows, Deferred Inflows, and Net Position (effective for fiscal years ending December 15, 2012, and later), and GASB Statement 65, Items Previously Reported as Assets and Liabilities (effective for fiscal years ending December 15, 2013, and later)—are altering the face of government balance sheets and statements of net assets.