Connecticut House Bill HB05655

Connecticut 2011 Regular Session

• Introduced: 1/21/11
• Refer: 1/21/11

Caption

An Act Requiring The State To Use Generally Accepted Accounting Principles (gaap).

Impact

If enacted, this bill would impact the way state financial documents and budgets are prepared, potentially leading to clearer financial reporting and reduced fiscal ambiguity. By establishing a framework for adherence to GAAP, the state could improve its budgetary processes, providing stakeholders with a more accurate picture of the financial health of the state. This could have far-reaching implications for state finances, including improved investment attractiveness and increased public trust in government financial reporting.

Summary

House Bill 05655 aims to require the state of Connecticut to adopt Generally Accepted Accounting Principles (GAAP) in the preparation of its financial documents and budget. This legislative measure, proposed by Representative Reynolds, is intended to enhance transparency and accountability in the state's financial practices. By aligning state accounting with GAAP, the bill seeks to ensure that state budgeting reflects a more standardized and rigorous accounting methodology, which would ultimately aid in better financial management of state resources.

Contention

While the goal of the bill is to enhance accountability and transparency, there may be debates regarding the implementation costs and the training required for staff to adapt to the new standards. Opponents may argue that the transition to GAAP could be resource-intensive and may face resistance from existing financial management systems currently in place. However, proponents are expected to emphasize the long-term benefits of improved financial governance that GAAP adherence can provide.