GASB 103 Financial Reporting Model Improvements Accounting Guidance

FY2025-26
Pennsylvania Local Educational Agencies (LEAs)
Annual Financial Report (AFR)

Accounting Guidance and Clarification
Implementation of GASB Statement No. 103 – Financial Reporting Model Improvements

Purpose of This Guidance

This guidance summarizes the changes that Local Educational Agencies (LEAs) will see in the Chart of Accounts (COA) and Annual Financial Report (AFR) Financial Statements as a result of the implementation of GASB

Statement No. 103 (GASB 103).

Effective Date

GASB 103 is effective for fiscal years beginning after June 15, 2025, and for all reporting periods thereafter.

High-Level Overview of the Change

GASB 103 eliminates the financial reporting categories of “Extraordinary Items” and “Special Items”. Transactions that meet the applicable criteria are now reported as “Unusual or Infrequent Items” on the AFR.

Impact on the Pennsylvania Chart of Accounts

The COA has been updated as of 12/18/2025 to reflect GASB 103 updates:

• All extraordinary and special item account codes have neem deleted from the COA.
  • 5530 - Extraordinary Items – Losses
  • 5520 - Special Items - Losses
  • 9920 - Special Items - Gains
  • 9930 - Extraordinary Items - Gains
• Two new account codes have been added:
  • 9940 - Unusual or Infrequent Items – Inflows
  • 5540 - Unusual or Infrequent Items – Outflows

LEAs should ensure these updated codes are used upon implementation.

Impact on AFR Financial Statements

GASB 103 affects the presentation of certain items in the AFR Financial Statements, including:

• Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds (REG) – Dropdown selections and exported report outputs will be updated to reflect GASB 103 by using Unusual or Infrequent Items in place of Special and Extraordinary Items.
• Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds (REP) –
  • Data entry fields and corresponding report outputs will be updated in alignment with the GASB 103 presentation changes shown in the Illustration on page 3.
  • New: GASB 103 Noncapital Subsidy Data-Entry Cells – REP Statement
    Additional data-entry fields have been added to the Noncapital Subsidies section of the REP Statement.
    Example below:

    Account Code and Description	Amount
    0073 - Federal Revenue from Intermediary Sources (6830)
    0074 - Contributions and Donations from Private Sources (6920)
    0075 - Revenue from State Sources
    0076 - Revenue from State Sources

  • Reporting Logic
    Amounts entered in these fields feed directly into the corresponding Noncapital Subsidy lines in the GASB 103 REP output (as shown in the illustration). LEAs must continue to report full revenue totals in the existing REP lines and subtract the subsidy portions from the Other Nonoperating Revenues and Expenses section to avoid duplication.

• Statement of Cash Flows – Proprietary Funds (CFP) – Dropdown selections and exported report outputs will be revised to use Unusual or Infrequent Items in accordance with GASB 103; these updates affect presentation only and do not change underlying cash activity.

Impact on Special Schedules

• Juveniles Incarcerated Schedule – Dropdown selections and exported report outputs will be updated to align with GASB 103 by using Unusual or Infrequent Items in place of Extraordinary or Special Items.
• Indirect Cost Schedule – Dropdown selections and exported report outputs will be updated to reflect Unusual or Infrequent Items in accordance with GASB 103; the indirect cost calculation methodology will remain unchanged.

Additional Information

This guidance addresses only the Pennsylvania AFR, Chart of Accounts, and related reporting changes resulting from GASB Statement No. 103. It is not intended to provide comprehensive accounting guidance for all aspects of GASB Statement No. 103.

Illustration