What does GASB require to be disclosed about budgetary information?

What does GASB require to be disclosed about budgetary information?

• A. Basis of budgeting must be disclosed; a schedule of original and final budgets is not required.
• B. A schedule or note disclosing original, final, and actual amounts and explanations of variances; basis of budgeting must be disclosed.
• C. Only final budget is required; variances are optional.
• D. Budget information is not required to be disclosed.

Answer: (B)

GASB requires budgetary information to be disclosed in a way that shows how what was planned compares with what actually occurred. Specifically, a schedule or note must present the original budget, the final budget (as amended), and the actual results, along with explanations of any variances between the final budget and actual amounts. In addition, the basis of budgeting—the method used to prepare the budget—must be disclosed so readers understand the numbers’ framework and how variances arose. This combination provides a clear picture of budgetary control and accountability. The other options fall short because they omit one or more of these elements: presenting only the final budget misses the original plan and the variances; omitting explanations of variances or the basis of budgeting obscures why differences occurred or how the budget was prepared; and saying budget information isn’t required ignores GASB’s explicit disclosure requirements.

GASB requires budgetary information to be disclosed in a way that shows how what was planned compares with what actually occurred. Specifically, a schedule or note must present the original budget, the final budget (as amended), and the actual results, along with explanations of any variances between the final budget and actual amounts. In addition, the basis of budgeting—the method used to prepare the budget—must be disclosed so readers understand the numbers’ framework and how variances arose. This combination provides a clear picture of budgetary control and accountability.

The other options fall short because they omit one or more of these elements: presenting only the final budget misses the original plan and the variances; omitting explanations of variances or the basis of budgeting obscures why differences occurred or how the budget was prepared; and saying budget information isn’t required ignores GASB’s explicit disclosure requirements.