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Business and Policy Areas
Business and Policy Areas

GASB Issues Concept Statement Addressing Communication Methods

April 20, 2005

On April 11, 2005, the Governmental Accounting Standards Board (GASB) issued Concepts Statement No. 3, Communication Methods in General Purpose External Financial Reports That Contain Basic Financial Statements. The Concepts Statement defines the communication methods commonly used in general purpose external financial reports, develops criteria for each communication method, and provides a hierarchy for their use.

 The concepts affecting communication methods apply to recognition, disclosure, and presentation of financial statement and required supplementary information. The definitions, criteria, and hierarchy should help the GASB or, in the absence of authoritative guidance, a preparer of a financial report determine the appropriate methods to use to communicate an item of information.

The Concepts Statement was developed with participation from GASB constituents, including representatives from higher education.  Concepts comprise the foundation of GASB measurement, recognition, reporting and display.  Addressing concepts is a long term goal of the GASB and is an important part of their technical agenda.  The Concepts Statement (Product Code GC03) can be ordered through the GASB’s order department at 800-748-0659 or via its website at

 For information please contact Sue Menditto.