What’s New at GASB: Key Projects to Watch in 2025 and Beyond

The Governmental Accounting Standards Board (GASB) continues to move forward with several projects aimed at enhancing transparency, consistency and usefulness in governmental financial reporting. As we enter the final quarter of 2025, now is a great time to check in with GASB to see what projects are currently underway.

Recently Finalized Projects

Financial reporting model improvements:
Approved in early 2024 and discussed in a previous blog, this standard will be effective for fiscal years beginning after June 15, 2026. It updates GASB 34 by enhancing management’s discussion and analysis (MD&A), refining financial statement formats and improving budgetary comparisons.

Active Projects with Recent Developments

Subsequent events:
This project addresses confusion and inconsistency in how governments disclose subsequent events. It clarifies the distinction between recognized and nonrecognized events, especially in areas like debt transactions and enacted tax rate changes.

Going concern uncertainties and severe financial stress:
The comment period for this project’s preliminary views closed on June 30, 2025. GASB is exploring how to improve disclosures for governments facing financial distress. The project will consider a new definition of “severe financial stress,” along with clearer criteria for when and what governments must disclose. Public forums are scheduled for July-September 2025.

Infrastructure assets:  
In June 2025, GASB tentatively affirmed that:

• Infrastructure assets should continue to be measured at historical cost (net of depreciation) unless the modified approach is elected.
• Governments should periodically reassess useful lives and salvage values for infrastructure assets (not required for other capital assets).
• Components with significantly different useful lives should be depreciated separately.
• Policies used to identify components do not need to be disclosed in the financial statements.

Revenue and expense recognition:  
Also in June 2025, GASB advanced decisions around:

• Excluding certain nonexchange transactions from this project
• Applying a “performance obligation” approach for recognizing revenue over time
• Allowing a hypothetical “reperformance test” to evaluate whether services are transferred over time

Pre-Agenda Research

Cybersecurity risk disclosures:
This research project is aimed at determining the different types of threats our state and local governments face and whether the financial statements should disclose them.

GAAP structure:
The first phase of the research is complete and the second phase is focusing on single authority structure.

Note disclosures:
GASB is researching the current disclosures for both pension, other post-employment benefits (OPEB) plans and revenue and expense recognition.

Ongoing Monitoring: Weaver Can Help

As the governmental accounting and financial reporting landscape continues to change, stakeholders must stay engaged and up to date with GASB. Contact us. We’re here to keep you informed as the latest projects move toward final standards in the future.

Authored by Kaylee Vachon

©2025