“Derivatives are often used by governments as a means to potentially reduce borrowing costs,” said GASB, which is based in Norwalk, Connecticut. “While derivatives may support financing needs, the lower costs come with additional risks. The objectives and terms of derivatives contracts, their risks and the fair value of the contracts are generally not specified in financial reports today.” Under the new GASB guidelines, state and local governments will be required to disclose in their financ
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