GASB proposes disclosures for tax abatements by governments
State and local government financial statements would be required to reflect agreements that state and local governments make to attract businesses to their areas under new accounting rules GASB proposed Friday.
In an effort to stimulate economic development, governments often agree to abate or reduce the taxes of businesses and other taxpayers. These agreements may have substantial effects on the financial health of these governments and their ability to raise revenue. Read more on the Journal of Accountancy.