healthcare, More for Offensive acronym leads to GASB's name change proposal GFOA staff was asked to stop using the acronym in their daily communications while membership, employees, and other stakeholders could be consulted. The annual report does not need to include the separate financial statements of other entities, pro forma data, or schedules required by Articles 3, 8, 11 and 12 of Regulation S-X, or predecessor audit reports. Association of International Certified Professional Accountants. Leases standard: Tackling implementation and beyond. Effective Immediately, no end-date identified. GASB staff said 11 of 13 leaders at stakeholder organizations agreed that renaming the Comprehensive Annual Financial Report was the way to go, and education alone would not be sufficient. Racial Slur Propels GASB to Mull Renaming Comprehensive Annual PDF Comprehensive Annual Financial Report - TN.gov Toolkit Here are some resources that we have developed that can assist you in communicating this change in your own organization: View full policy statement approved by GFOA Executive Board on March 5, 2021 and by GFOA membership on July 12, 2021. 98, Annual Comprehensive Financial Report, and using the acronym ACFR, which is generally being pronounced "AK-fer," with the first syllable rhyming with "back" and second sounding like "fur.". Your online resource to get answers to your product and Our favorite ideas, insights, strategies, tactics and best practices from the AICPA's Engage conference. profession, TSCPA acts on behalf of its members and provides support, enabling its members to When you pronounce the acronym, it is a highly offensive racial slur directed toward Black South Africans, GASB Chair Joel Black said in a media advisory. and services for tax and accounting professionals. While doing so, GFOA and our partners can demonstrate our values in action, become more inclusive, and create safer spaces for the important work that we conduct. Upon learning of the challenges associated with a term common across the industry, GFOAs leadership team quickly agreed that this issue needed to be further evaluated. The more you buy, the more you save with our quantity While GFOA serves governments in the US and Canada, the organization has significant international partners, including in South Africa through the Chartered Institute of Government Finance, Audit and Risk Officers (CIGFARO). To change the text size you can use your web browser's settings. financial reporting, Global trade & The purpose of this policy is to outline an intentional change in the professional standards and expectations of government finance professionals and their industry affiliates as it relates to the formal and day-to-day discussion of Comprehensive Annual Financial Reports. In October 2021, the Governmental Accounting Standards Board issued Statement No. collaboration. Separately, a similar pronunciation also has a deeply controversial meaning in Arabic for those who practice Islam. If finalized, the name change would take effect to fiscal years beginning on or after December 15, 2021, with earlier application encouraged, the board agreed. One of the executive directors I spoke to told me one of his board members is from South Africa and he reached out to him and asked his opinion, and his opinion unsurprisingly is that changing it would be a good thing, a GASB staff member told the board. 2022 Annual Comprehensive Financial Report Guide to Understanding Annual Comprehensive Financial Reports (ACFRs) As a member of GFOA, PRISM has complied with its policy statement will henceforth refer to the report as the Annual Comprehensive Financial Report (ACFR), the name proposed by GASB. The Governmental Accounting Standards Board (GASB) recently issued a pronouncement, Statement 98, that changes the name of the most extensive report prepared following its standards to the annual comprehensive financial report (ACFR). Suite. Discuss ballot draft of a final Statement and consider for approval. GFOA established the Certificate of Achievement for Excellence in Financial Reporting Program (COA Program) in 1945 to encourage and assist state and local governments to go beyond the minimum requirements of generally accepted accounting principles to prepare comprehensive annual financial reports that evidence the spirit of transparency and full disclosure and then to recognize individual . It is acceptable for localities to post the available Statement of Name Change Document to the database or website alerting interested stakeholders to the name change and the effective date. From the taxpayer's viewpoint, what are the most important numbers in an ACFR? The leading CPA financial planners with over $1 billion in assets under management, from Accounting Today's annual ranking. The GASB is the nations main accounting rulemaking body that establishes accounting and financial reporting standards for U.S. state and local governments that follow GAAP. GASB published an exposure draft in support of renaming the acronym on April 13, 2021, and they are accepting comments through July 9, 2021. governments, Business valuation & consulting, Governmental Accounting and Financial Reporting Principals, Authoritative Status of NCGA Pronouncements and AICPA Industry Audit Guide, Products & PDF Comprehensive Annual Financial Report Sections - MemberClicks The ACFR supplements the basic financial statements with: Introductory information. It is now woven throughout GAAP and widespread in practice. How is it different from a regular financial report or budget? Subscribe to our Checkpoint Newsstand email to get the latest tax, accounting, audit, and employee benefits news delivered to your inbox each week. We are proud to present the 2022 Annual Comprehensive Financial Report (ACFR) as well as the 2022 Financial Highlights or the "Popular Report". Over the past few weeks, we learned that the vast majority of those engaged felt that 1) the traditional and common use of this acronym was an issue worth addressing, 2) that change could be easily and cost-effectively accomplished through clear communication and a shared commitment to advocate for meaningful change, and 3) that this initiative provided an opportunity to demonstrate our professionalism, values, and thought leadership in action. The GASB on January 12, 2021, agreed to draw up a proposal to change the name Comprehensive Annual Financial Report (CAFR) to Annual Comprehensive Financial Report (ACFR) efforts to eliminate the chords of an offensive slur directed at Black South Africans. financial reporting, Global trade & All rights reserved. shipping, and returns, Cookie It's free! 98. Audit & of products and services. environment open to Thomson Reuters customers only. The word kaffir was adopted as a derogatory term after 1948 when the Apartheid system was established. Financial reports prepared in accordance with GAAP are required to contain basic financial statements (including notes to financial statements) and certain required supplementary information (such as managements discussion and analysis). An Annual Comprehensive Financial Report, formerly called Comprehensive Annual Financial Report (CAFR)) [1] is a set of U.S. government financial statements comprising the financial report of a state, municipal or other governmental entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board . and services for tax and accounting professionals. governments, Explore our Understanding Comprehensive Annual Financial Reports - MunicipalBonds.com Under this new policy, these names have officially changed to the Certificate of Achievement Program and the Accounting, Auditing and Financial Reporting Committee, respectively. 98, The Annual Comprehensive Financial Report, establishes the Annual Comprehensive Financial Report and ACFR in GAAP for state and local governments and gets rid of the previous report name and offensive acronym. Address or Name Change Form IRS W-4P Witholding Certificate. brands, Social TMRS Financial Reports The board plans to begin discussions during its January 12-13 meetings, focused on consideration of terminology change, a review of the first draft of the standards section of an exposure draft, and cost-benefit considerations, its meeting agenda states. The changes in the name and acronym were widely supported by individuals and stakeholder groups that responded to the April 2021 Exposure Draft proposing the changes. The IPSASB works to improve public sector financial reporting worldwide through the development of IPSAS, international accrual-based accounting standards, for use by governments and other public sector entities around the world. In 2019, we amended the code of ethics to include a specific commitment to diversity and inclusion, an important step in making public our responsibility and the responsibility of our members to these initiatives. Learn more by downloading this comprehensive report. It now ranks as perhaps the most offensive term in South African English. services, Racial Slur Propels GASB to Mull Renaming Comprehensive Annual Financial Report, Stay on top of changes in the world of tax, accounting, audit, and employee benefits, U.S. Accounting Rulemakers Studying How Investors Use Artificial Intelligence to Consume Financial Data, Concerns Bubbling Up Over Implications of Financial Data Transparency Act for GASB, Much Talk, Little Action on Cryptocurrencies Among Cities and States, GASB Says, Companies Can Focus Solely on Climate-Related Disclosures at First Adoption Next Year, ESG Rulemaker Says, Kansas Issues Guidance Regarding Delivery Fees Charged by Retailers, For Explore all Until now, the name applied to those reports was the comprehensive annual financial report. accounting firms, For FINANCIAL SECTION . research, news, insight, productivity tools, and more. industry questions. services, Tackle your most challenging audit needs anytime, anywhere with one audit solution, Stay on top of changes in the world of tax, accounting, audit, and employee benefits, Cornerstone Researchs Elaine Harwood on Trends in PCAOB, SEC Accounting and Auditing Enforcement Actions, SEC Delays Climate Change Disclosure Rulemaking, PCAOB Proposes Revised Audit Requirements for Non-Compliance with Laws and Regulations, Michigan Issues Guidance on New Law on Reporting Adjustments From Partnership Level Audits, House Democrat Presses Chinese Ambassador on PCAOB Audit Inspection Deal, Republican Bill Would Raise Tax on University Endowments, For It has been pointed out to the GASB that that pronunciation sounds like the word kaffir, which is a profoundly offensive term directed at Black South Africans. Thank you to everyone who worked with us and shared their input.. 2022 Annual Comprehensive Financial Report Download the 2022 Annual Comprehensive Financial Report [PDF, 219.0MB] as a single document or choose report sections below. Until now, the name of the report was the comprehensive annual financial report. Summary of Statement No. 98 - GASB In this way, when someone searches for the acronym they will find the notification referencing the new way forward. statement, 2019 brands, Corporate income management, Document healthcare, More for 98, Annual Comprehensive Annual Report, officially changing the name comprehensive annual financial report to annual comprehensive financial report and the acronym to ACFR. making. A final statement with the change in slated for October this year, the discussions indicated. Corporate Subscribeto ourCheckpoint Daily Newsstandemail to get all the latest tax, accounting, and audit news delivered to your inbox each weekday. Financial Reports including Comprehensive Annual Financial Reports by year. 2023 Government Finance Officers Association of the United States and Canada, Alliance for Excellence in School Budgeting, Accounting, Auditing, & Financial Reporting, Employment Resources for Finance Officers, Imposed Fee and Fine Use by Local Governments, Accounting, Auditing and Financial Reporting, Intergovernmental Relations and Federal Fiscal Policy, Public Employee Pension and Benefits Administration, Tax-Exempt Financing and the Municipal Bond Market. Introducing the Annual Comprehensive Financial Report - LinkedIn End the Acronym - Government Finance Officers Association And there are stakeholders involved with us that have international contracts, particularly even with South Africa where this is of particular importance to them.. Subscribeto ourCheckpoint Daily Newsstandemail to get all the latest tax, accounting, and audit news delivered to your inbox each weekday. Aside from the name, no substantive changes will be made to the report as a result of the proposal. corporations, For This recommendation is the result of increasing professional awareness that the old acronym, when pronounced aloud, sounds the same as a derogatory term historically used in other parts of the world. The acronym for "comprehensive annual financial report" sounds like an ethnic slur that ranks among the most offensive terms in South African English. The Governmental Accounting Standards Board (GASB) issued a pronouncement that changes the name of the most extensive report prepared following its standards to the annual comprehensive financial report or ACFR. GASB Advances Talks to Eliminate Offensive Slur from Acronym for Comprehensive industry questions. The Journal of Accountancy is now completely digital. The acronym for the report, when pronounced aloud, sounds phonetically similar to a derogatory term. GASB Issues Pronouncement Renaming the Comprehensive Annual Financial You can learn more about that recommendation on the GFOA website. corporations, For Otherwise, no changes were made to the reports structure or content. It should be noted, however, that because the terminology is ingrained in the AICPAs auditing standards, the Blue Book, textbooks, and other professional literature, changing it would have a secondary impact as those publications are updated to reflect the change, the summary states. And now the agency , The Public Company Accounting Oversight Board (PCAOB) on June 6, 2023, voted 3 to 2 to issue a proposal that , by Peter G. Pupke, Esq. accounting firms, For 1,Authoritative Status of NCGA Pronouncements and AICPA Industry Audit Guide. The more you buy, the more you save with our quantity The new accounting standard provides greater transparency but requires wide-ranging data gathering. Recently it came to the attention of GFOA leadership that this four-letter acronym, frequently leveraged in the government financial accounting industry to shorten the name of the Comprehensive Annual Financial Report, is pronounced the same way as a profoundly offensive racial slur in South Africa. Proposed Statement establishes the term annual comprehensive financial report and its acronym ACFR. Instead, GFOA recommends immediately adopting the new name recently promulgated by GASB in Statement No. Through the years, GFOA has been a leading industry partner helping to build financial best practices in South Africas emerging democracy. perform quality professional services while serving the public interest. accounts, Payment, policy, Privacy statement, 2019 Ive been at the beginnings of GASBs conversations of this and even now when I still see the name as it is, I still say it and then I try to correct myself, and Im very conscious about the sensitivities of the name and the hurt that it has caused, she said. Replacing the term would have no impact on the effort required to prepare, audit, or use GAAP-based financial statements, the board said in a summary of the project. Renaming the Comprehensive Annual Financial Report. In the summer of 2020, we established the Racial Equity Taskforce, an internal group that has developed programs and helped inform our long-term internal and external approach to racial equity at GFOA. The Government Finance Officers Association (GFOA) recommends immediately adopting the new name recently promulgated by the Governmental Accounting Standards Board (GASB) in Statement No. GFOAs leadership team understands that there may always be biases and concerns of which we are unaware, but has determined, with significant member input, that when confronted with new information on how our words or actions may negatively impact a particular group, it is our collective professional responsibility to give that information serious consideration. State Government Annual Financial Reports, Proceso de Quejas para el Acceso de Idioma, Controllers Office streamlined processes. [Rule 14a-3 (b) (1)] 1410.3 Royalty Trusts. Yes. Your online resource to get answers to your product and GASB standards are recognized as authoritative by state and local governments, state Boards of Accountancy, and the American Institute of CPAs. Audit & A pre-ballot draft of the issue will be discussed in February, and in April the board will vote on the issuance of an exposure draft to get views on the matter from the public, according to the discussions. making. accounts, Payment, corporations. Additionally, the acronym has the same pronunciation as the Arabic word that means unbeliever which is often applied in a derogatory manner. The Comprehensive Annual Financial Report is a set of U.S. government financial statements comprising the financial report of a state, municipal, or other governmental entity that complies with the accounting requirements promulgated by the GASB. Beginning with the report dated June 30, 2020, the State Controllers Office (SCO) changed the name of the Comprehensive Annual Financial Report to Annual Comprehensive Financial Report, in compliance with Governmental Accounting Standards Board (GASB) Statement No.