GASB 100 would apply and require new disclosures if the reporting agency has any:

• Change in accounting principle — could include a change from one GAAP principle to another GAAP principle or the implementation of a new GASB pronouncement. The new principle must be preferable based on improved understandability, reliability, relevance, timeliness, consistency and comparability.
• Change in accounting estimate — could include changes to the inputs used for an estimate or result from a change in circumstances, new information or more experience, with the change in measurement methodology being preferable.
• Change to or within the reporting agency — would be applicable for agencies (institutions of higher education) where a component unit is added or removed, or a component unit has a change in presentation between blended and discretely presented. Changes to the reporting agency also apply when a fund is added or removed, resulting from the movement of continuing operations or a fund is reclassified between major and non-major.

Note: Since GASB 100 addresses the transactions or other events that must result in an adjustment to or restatement of prior periods, GASB concluded that a separate category for prior-period adjustments must be eliminated to remove redundancy and alleviate confusion.

GASB 100 applies to the financial statements of all state agencies as of fiscal 2024. GASB 62 guidance applied only to governmental activities, business-type activities and proprietary funds. GASB 100 expands the scope to include governmental funds and fiduciary funds.

Most accounting pronouncements include transition guidance in the last few paragraphs. Going forward, accounting pronouncements will only have transition guidance if they are different from the guidance in GASB 100.

GASB 100 applies if the reporting agency had any of the following within the current reporting period:

• Implementation of new GASB pronouncement
• Error corrections that affected the years prior to those in the current reporting period
• Changes in accounting estimate
• Changes to how the reporting agency is structured
• Changes in major or non-major fund presentations

These types of changes would require disclosures in Note 14 for a restatement of the earliest period presented that affected the:

• Beginning net position
• Fund balance
  – or –
• Fund net position

GASB 100 requires that changes be disclosed in a tabular format in the notes while also presenting the aggregate amount of adjustments on the impacted balances in the financial statements. The restatement disclosure must reconcile the beginning balances as previously reported to the beginning balances as adjusted. Each separate column in the basic financial statements, except for the totals column, is a reporting unit. The new format is intended to standardize the reporting of accounting errors, changes to or within the financial reporting entity and changes in accounting principles.

These required note disclosures must be made in the reporting period in which the accounting change occurred, or the error is discovered and corrected. For comparative financial statements, if the prior periods presented were restated in the period in which the accounting change occurred or the error was discovered and corrected, subsequent annual financial statement need not repeat the disclosures.

Both the Required Supplementary Information (RSI), which includes Management’s Discussion & Analysis (MD&A), and the Supplementary Information (SI) may contain more prior periods than the basic financial statements.

GASB 100 also addresses the treatment of the following type of changes:

Changes in Accounting Principle and/or to the Reporting Agency

As per GASB 100:

• Present information consistently for reporting periods presented in both the basic financial statements and RSI or SI.
• Do NOT restate RSI or SI for prior reporting period that are earlier than those in the basic financial statements.
• If the prior period RSI or SI is not consistent with current period information, an explanation of why the information is not consistent must be provided in RSI or SI (as applicable) and the MD&A must reference the related footnote disclosure.

Error Correction

As per GASB 100:

• Restate the RSI or SI to reflect the error correction for reporting periods presented in both the basic financial statements and RSI or SI.
• If the error affects periods earlier than those in the basic financial statements, all affected information must be corrected by restating the information for those prior periods in RSI or SI (as practicable).
• Identify information presented in RSI or SI that was affected by an error as restated or not restated (as appropriate) and provide an explanation about the nature of the error in the RSI or SI (as applicable). If it is not practicable to restate the RSI or SI information, the agency must provide an explanation of why it is not practicable to restate.