On March 19, 2025, GASB released its Preliminary Views on Severe Financial Stress and Probable Dissolution Disclosures, introducing significant changes to how financial statement users are informed about risks to a government’s financial condition and legal existence.
This proposal separates two key concepts:
1. Severe Financial Stress (SFS): Focused on a government’s financial condition as of the financial statement date.
2. Probable Dissolution (PD): Focused on the likelihood that a government will cease to exist as a legally separate entity within 12 months.
Learn more about the conditions and disclosure requirements under each concept by watching our latest blog video. And don’t forget, comments to GASB are due by June 30, 2025!
SCACPA is excited to partner with Galasso Learning Solutions and the Genuine Learning Blog for real-time A&A updates and answers for SCACPA members.
Alexandria Romero, CPA, is a seasoned professional with nearly two decades of expertise in governmental and nonprofit accounting. She plays a pivotal role in developing governmental training programs at Galasso Learning Solutions. Before joining the team, Alex honed her skills in various roles within the accounting field. Her engaging presentation style and passion for connecting with attendees have made her a sought-after educator, known for her ability to make complex topics accessible.
