[Federal Register Volume 66, Number 201 (Wednesday, October 17, 2001)]
[Notices]
[Page 52766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26164]


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FEDERAL ACCOUNTING STANDARDS ADVISORY BOARD


Notice of Issuance of Statement of Federal Financial Accounting 
Standards

AGENCY: Federal Accounting Standards Advisory Board.

ACTION: Notice of New Statement of Federal Financial Standards No. 21, 
Reporting Corrections of Errors and Changes in Accounting--Amendment of 
SFFAS 7, Accounting for Revenue and Other Financing Sources.

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    Board Action: Pursuant to the Federal Advisory Committee Act (Pub. 
L. No. 92-463), as amended, and the FASAB Rules of Procedure, as 
amended in October, 1999, notice is hereby given that the Federal 
Accounting Standards Advisory Board has published a Statement of 
Federal Financial Standards No. 21, Reporting Corrections of Errors and 
Changes in Accounting Principles--Amendment to SFFAS 7, Accounting for 
Revenue and Other Financing Sources. The Board approved the Statement 
in December 2000, and submitted it to FASAB principles for a 90-day 
review. The review period ended October 16, 2001.
    A summary of the proposed Statement follows:

    I. On October 16, 2001, the Federal Accounting Standards 
Advisory Board released Statement of Federal Financial Standards 
(SFFAS) No. 21, Reporting Corrections of Errors and Changes in 
Accounting Principles--Amending SFFAS 7, Accounting for Revenue and 
Other Financing Sources. The Chairman of the Federal Accounting 
Standards Advisory Board (FASAB) announced that the FASAB has issued 
a standard amending the reporting requirements for errors, 
discovered in the current year, that would have materially affected 
prior year financial statements. The amended standard required that 
adjustments be recognized as a change in cumulative results of 
operations (rather than as an element of net results of operations 
for the period) and that prior period financial statements not be 
restated for prior period adjustments recognized in the current 
period. The amendment requires that, when material errors are 
discovered in prior year financial statements, all statements 
presented must be restated to correct the error. The primary reason 
for the amendment is to allow reporting entities to present 
comparative statements. The Board has retained the requirement that 
prior period financial statements not be restated for changes in 
accounting principles, unless otherwise specified in the transition 
instructions section of a new FASAB standard. The language 
addressing the requirements, however, has been revised to improve 
clarity and to require certain disclosures.
    II. The standards prescribed in SFFAS No. 21 are effective for 
periods beginning after September 30, 2001 with earlier 
implementation encouraged. Hard copies of SFFAS No. 21 will be 
mailed to FASAB's mailing list subscribers. Additionally, it will be 
in available on FASAB's home page
http://www.financenet.gov/fasab.htm. Copies can be obtained by 
contacting FASAB at (202) 512-7350, or [email protected].

FOR FURTHER INFORMATION CONTACT: Wendy Comes, Executive Director, 441 G 
St., NW., Room 6814, Washington, DC 20548, (202) 512-7350, or Andrea 
Palmer at (202) 512-7360.

    Authority: Federal Advisory Committee Act, Pub. L. No. 92-463.

    Dated: October 16, 2001.
Wendy M. Comes,
Executive Director.
[FR Doc. 01-26164 Filed 10-16-01; 8:45 am]
BILLING CODE 1610-01-M