GASB Issues Implementation Guide 2025-1 with Q&As

GASB Standards Updates

Published June 23rd, 2025

Detected March 13th, 2026

Summary

The Governmental Accounting Standards Board (GASB) has issued Implementation Guide No. 2025-1, providing 12 new questions and answers to clarify GASB standards on various topics including leases, accounting changes, and cash flows. This guidance is intended to assist state and local governments in applying generally accepted accounting principles.

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What changed

The Governmental Accounting Standards Board (GASB) has released Implementation Guide No. 2025-1, titled "Implementation Guidance Update—2025." This guide contains 12 new questions and answers designed to clarify and explain GASB pronouncements on topics such as leases, accounting changes and error corrections, conduit debt obligations, cash flows reporting, compensated absences, and financial reporting model improvements. It also includes amendments to existing guidance on ownership of an asset and governmental fund type definitions. The guidance is cleared by the Board and constitutes Category B GAAP.

This guidance is intended to assist state and local governments in applying generally accepted accounting principles (GAAP) to specific circumstances. While the guide itself does not impose new obligations or deadlines, regulated entities should review the Q&As to ensure their accounting practices align with GASB standards. The guide is available for download free of charge from the GASB website.

What to do next

Review GASB Implementation Guide No. 2025-1 for clarity on specific accounting standards.
Update internal accounting policies and procedures as necessary to align with the guidance provided in the Q&As.

Source document (simplified)

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GASB Provides Guidance to Assist Stakeholders With Application of Its Pronouncements

Norwalk, CT, June 23, 2025 —The Governmental Accounting Standards Board (GASB) today issued implementation guidance in the form of questions and answers intended to clarify, explain, or elaborate on certain GASB pronouncements.

Implementation Guide No. 2025-1, Implementation Guidance Update—2025, contains new questions and answers that address application of GASB standards on leases, accounting changes and error corrections, conduit debt obligations, cash flows reporting, compensated absences, and financial reporting model improvements. The guide also includes amendments to previously issued implementation guidance related to ownership of an asset and governmental fund type definitions.

The GASB periodically issues new and updated guidance to assist state and local governments in applying generally accepted accounting principles (GAAP) to specific facts and circumstances that they encounter. The guidance is developed based on:

Application issues raised during due process on GASB pronouncements,
Questions it receives throughout the year, and
Topics identified by members of the Governmental Accounting Standards Advisory Council and other stakeholders.

The guidance in Implementation Guides is cleared by the Board and constitutes Category B GAAP. The guide is available to download free of charge on the GASB website, www.gasb.org.