Which statement requires the current year recognition of debt issuance costs?

The requirement for current year recognition of debt issuance costs is outlined in GASB Statement No. 65. This statement specifically addresses the reporting of deferred outflows of resources and deferred inflows of resources, establishing that certain costs associated with the issuance of debt should be expensed in the period incurred rather than being deferred. By recognizing these costs in the current year's financial statements, municipalities align their reporting practices with the principles of transparency and fiscal accountability, ensuring that the financial impact of these costs is reflected in the period in which they occur.

In contrast, the other statements mentioned do not mandate the immediate expensing of debt issuance costs. GASB Statement No. 62 deals with overall financial reporting principles, No. 68 pertains to accounting and financial reporting for pensions, and No. 63 focuses on financial reporting for deferred outflows and inflows of resources that affect net position. None of these specifically address the accounting treatment of debt issuance costs as GASB Statement No. 65 does.