This article provides an overview of GASB’s standard setting activity for 2026, along with updates on outstanding exposure drafts and certain ongoing projects. While GASB has scaled back its standard-setting activity in recent years, there are several upcoming standards to monitor. This article includes summaries for all soon-to-be-effective standards, sorted by effective date. There are also links to resources from Forvis Mazars for a deeper dive.
Section 1 – Upcoming Effective Dates
Fiscal Years Beginning After:
- June 15, 2025
- Statement No. 103, Financial Reporting Model Improvements
- Statement No. 104, Disclosure of Certain Capital Assets
- June 15, 2026
- Statement No. 105, Subsequent Events
Statement No. 103, Financial Reporting Model Improvements
The objective of this Statement is to improve key components of the financial reporting model. The Statement provides improvements to management’s discussion and analysis (MD&A); unusual or infrequent items; the presentation of the proprietary fund Statement of Revenues, Expenses, and Changes in Fund Net Position; major component unit information; budgetary comparison information; and the financial trends in the statistical section.
Resources:
- GASB Updates the Financial Reporting Model
- GASB 103 Implementation Checklist
- Streamlining GASB 103 With The Reporting Solution
- GASB’s Financial Reporting Model Updates for Healthcare Entities
- GASB 103 Implementation & Financial Reporting Insights
- GASB 103 & Beyond: Key Updates for Public Sector Entities
Statement No. 104, Disclosure of Certain Capital Assets
The objective of this Statement is to provide users of governmental financial statements with essential information about certain types of capital assets. Statement 104 requires lease assets and certain intangible right-to-use assets to be disclosed separately by major class of underlying asset, requires subscription assets to be disclosed separately, and requires other intangible assets to be disclosed separately by major class in the notes to the financial statements. As there have been several statements in recent years that add to the capital asset note disclosure, Statement 104 provides additional guidance on how those should be presented in the notes to the financial statements. In addition, Statement 104 establishes criteria for identifying capital assets held for sale and provides guidance on the disclosures required for those assets.
Statement No. 105, Subsequent Events
The objective of this Statement is to improve the consistency and clarity of financial reporting requirements for subsequent events. The Statement updates the definition of a subsequent event to include transactions or other events occurring after the financial statement date but before the financial statements are available to be issued, as well as modifies the subsequent events time frame throughout the GASB literature. It also clarifies the distinction between recognized and nonrecognized subsequent events and establishes related disclosure requirements.
Section 2 – Technical Agenda
Project Plan Summary Timeline (Subject to Change)
2026
- Infrastructure Assets – 1Q 2026 (Exposure Draft)
- Implementation Guidance – Update – 3Q 2026 (Final)
2027
- Infrastructure Assets – 1Q 2027 (Final)
- Going Concern – 2Q (Exposure Draft)
- Revenue and Expense Recognition – 3Q 2027 (Exposure Draft)
2028
- Going Concern – 2Q 2028 (Final)
- Revenue and Expense Recognition – 4Q 2028 (Exposure Draft)
2031
- Revenue and Expense Recognition – 1Q 2031 (Final)
Projects
The following projects are at various stages of research, due process, public comment, or redeliberation. GASB will finalize the effects of the proposed standards after it considers proposal feedback. Project scope, proposed requirements, and expected issuance dates may change as GASB considers feedback and continues deliberations.
Implementation Guide – 2026
Description: The objective of this implementation guide is to provide additional guidance related to subsidies as defined in Statement No. 103, Financial Reporting Model Improvements.
Status: An Exposure Draft was issued in February 2026 and a final Implementation Guide is anticipated to be issued in September 2026.
Revenue & Expense Recognition
Description: The objective of this project is to develop a comprehensive, principles-based model that would establish categorization, recognition and measurement guidance applicable to a wide range of revenue and expense transactions. GASB has tentatively decided that there are two categories of transactions: category A and category B. Because GASB’s decisions remain tentative, the categories and related recognition and measurement requirements may change before an exposure draft is issued.
Status: A Preliminary Views document was issued June 2020. GASB currently anticipates issuing two exposure drafts for the statement that will cover different topics. The first exposure draft is anticipated to be issued by September 2027 and will cover categorization and category B recognition and measurement. A second exposure draft is anticipated to be issued in December 2028 that will cover category A recognition and measurement. A final statement is anticipated to be issued in February 2031.
Infrastructure
Description: The objective of this project is to address issues related to accounting and financial reporting for infrastructure assets. The proposed guidance would update the definition of infrastructure assets, provide updated guidance for the recognition and measurement of infrastructure assets, and require additional disclosures in the notes to financial statements.
Status: An Exposure Draft was issued in March 2026, and GASB anticipates issuing a final statement in March 2027.
Going Concern Uncertainties & Severe Financial Stress
Description: The objective of this project is to address issues related to disclosures regarding going concern uncertainties, severe financial stress, and probable dissolution. GASB began this project to address a diversity in practice regarding whether and when such disclosures were made.
Status: A Preliminary Views document was issued in March 2025. GASB currently anticipates issuing an exposure draft in June 2027 and the final statement in June 2028.
Pre-Agenda Research
GASB has several pre-agenda research activities. These represent items that GASB is not currently deliberating new guidance on. The research is designed to provide GASB with information to determine if there is a need for new guidance.
GAAP Structure
GASB’s current structure includes both original pronouncements and a codification, which are equally authoritative (dual-authority approach). The objective of this research activity is to evaluate the effectiveness of GASB’s current dual-authority approach to communicating GAAP and researching if there is a more effective approach.
In April 2026, GASB issued a discussion memorandum, The Structure for Communicating Generally Accepted Accounting Principles for State and Local Governments. The comment period for the document was April 2026 through August 2026. GASB anticipates a final research memorandum in April 2027.
Pension & OPEB Disclosures – Concepts Statement 7
In June 2022, GASB issued Concepts Statement No. 7, Communication Methods in General Purpose External Financial Reports That Contain Basic Financial Statements: Notes to Financial Statements – an amendment of GASB Concepts Statement No. 3 (Concepts Statement 7). Concepts Statements identify the objectives and fundamental principles that can be applied to address financial reporting issues, and Concepts Statement 7 describes the purpose of the notes to the financial statements and the types of information that are appropriate for inclusion in the notes. This pre-agenda research activity is researching the note disclosures required for pensions and other postemployment benefit plans (OPEB) through the lens of Concepts Statement 7.
GASB anticipates the presentation of a research memorandum in December 2026.
Pension & OPEB – Effects of Deferred Outflows of Resources & Deferred Inflows of Resources on Expense
The primary objective of this pre-agenda research activity is to evaluate how pension and OPEB expense would be different if changes in the pension or OPEB liability that are currently reported as deferred outflows of resources and deferred inflows of resources related to pensions or OPEB and recognized in pension or OPEB expense over time (in accordance with existing GAAP) were instead recognized in expense when the changes occur. GASB’s intention is to use this research to support a potential project to explore if there could be additional practical expedients related to pension and OPEB reporting to reduce the burden on local governments and auditors.
This activity is in the early stages, and GASB is anticipating presenting a research design to the board in December 2026.
Revenue & Expense Recognition – Note Disclosures
During deliberations on the Revenue and Expense Recognition project, GASB identified potential areas for note disclosures related to that project. As the current scope of the project does not include note disclosures, GASB has added the pre-agenda research to explore the potential disclosures.
This activity is currently paused until the Revenue and Expense Recognition project is further along so that specific examples of potential disclosures could be provided to users during the research.
Technology Projects
GASB has one technology project included in the Technical Plan. Unlike the previous projects, this technology project is not designed with a future accounting standard in mind.
Voluntary Digital Financial Reporting
The objective of this project is to develop one or more digital taxonomies for governmental financial reporting to enable governments to voluntarily consider alternative digital technologies that can provide for easier extraction of government financial information by the users of government financial reports. This activity is independent of the Financial Data Transparency Act (FDTA) that Congress passed in 2022.
GASB is anticipating the release of a Discussion Memorandum that would be subject to comment from September to November 2026.
Monitoring Activities
Before GASB formally researches the need for a new project, GASB staff monitors changes and the prevalence of issues within the state and local government environment. GASB staff are currently monitoring several matters to evaluate if a potential research activity is necessary:
- AICPA Auditing Standards: The staff will monitor the effect of potential or proposed changes in generally accepted auditing standards (GAAS) established by the American Institute of CPAs (AICPA) on the state and local government environment for GASB to evaluate the need to update existing GASB accounting and financial reporting standards.
- Environmental Credits: The staff will assess the prevalence and common uses of environmental credits, such as emissions trading, within state and local governments to evaluate if guidance is needed.
- Environmental, Social, and Governance (ESG) Reporting:Staff will monitor the development of governments’ activities regarding ESG reporting and the development of guidance by other standard setters.
- GAAP Utilization: Although GASB establishes U.S. GAAP for state and local governments, there is no single authority that requires states and local governments to use GAAP. Instead, each state provides regulations for what financial reporting framework each government should follow. In 2025, GASB published a staff working paper presenting its research findings on the requirements in each state. The staff continues to research the requirements for the different types of governments in each state.
Conclusion
The assurance team at Forvis Mazars delivers extensive experience and skilled professionals to help align with your objectives. Our proactive approach includes candid and open communication to help address your financial reporting needs.
Our public sector accounting, audit, and consulting experience and resources can help you with compliance, stretch your dollar, and plan for the future. We serve a variety of entities, including state and local governments, airports, transportation authorities, public power and utility providers, tribal governments, and public colleges and universities.
If you have any questions, please reach out to a professional at Forvis Mazars. For assistance with the adoption of new GASB pronouncements, please explore our Government Outsourced Accounting Services.