Basic financial statements for the State of New York are prepared in conformity with generally accepted accounting principles (GAAP) for governments as prescribed by the Governmental Accounting Standards Board (GASB) which is the standard-setting body for establishing governmental accounting and financial reporting principles. From time to time, GASB will issue statements that prescribe accounting and financial reporting requirements for certain transactions. The procedures listed below have been developed in order to ensure a smooth transition when implementing a new accounting/financial-reporting standard.

When a new accounting/financial reporting standard is issued by GASB, it must be critiqued to identify the accounting issues involved as well as what information is required in order to comply. As part of the accounting issues determination process, both financial reporting requirements and the effect on the State's financial position must be identified. Discussion with appropriate units in OSC that may be impacted by the change would be initiated for their input.

Based upon the information obtained during this process, a tentative decision must be made to recommend early implementation if allowed by the statement. In order to implement early, all entities that are part of the State reporting entity (i.e. enterprise funds and public benefit corporations) that may be impacted by the standard need to implement concurrently with the State. To ensure GASB standards are implemented concurrently by the primary government, enterprise funds and component units an outreach is undertaken for each new GASB standard to coordinate implementation.

Guide to Financial Operations

REV. 01/01/2017