Accounting News

Thursday, December 8, 2011
States Voice Concern over FASB Proposal

The FASB is proposing would require five year cash-flow projections to receive a clean audit. Several state treasurers have some reservations about the proposal at the National Association of State Treasurers conference this week. Their concern is that local municipalities would have a difficult time generating the projections. Most would need to hire outside actuaries to prepare the projections. In a time of great fiscal strain it is just one more expense. There is also concern among the treasurers about the accuracy of projecting out five years. That is much further than most municipalities now budget their cash-flow.

The projections are wanted by bond buyers. The use the information to price and evaluate municipal bonds.

The proposal is going to be tested by 50 governments. They are to report back how well it can be implemented. The feedback and the comments will be used to create a final proposal by FASB.

If you need help with cash-flow analysis and budgeting for you business we can help. Our business accountants are experts in helping small businesses. We can manage everything from simple bookkeeping to acting as your CFO.

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