ACC/290 Wk 3 Team Assignment

Topics: Generally Accepted Accounting Principles, Government, Income statement Pages: 2 (698 words) Published: November 9, 2013

Governmental Accounting Standards Board and Financial Accounting Standards Board Analysis Paper ACC/460
October 28, 2013

Governmental Accounting Standards Board and Financial Accounting Standards Board Analysis Paper The purpose of this paper is to review, compare, and show the contrast between the two accounting standard boards; Governmental Accounting Standards Board (GASB), and the Financial Accounting Standards Board (FASB). The objectives of both Boards will be discussed as well as similarities and differences with each. The topic will then review modified accrual basis of accounting and how it differs from full accrual accounting. Governments have unique characteristics which require a different accounting guideline than what is typically found in proprietorships and not-for-profit organizations. The GASB has set the objectives and standards that government agencies utilize in their financial reports. The cornerstone for this financial reporting is accountability and requires governments to answer to their citizenry, justifying funds that are raised, and how they are spent. The objectives of the financial reporting are as follows: Interperiod equity which is the review of current year revenue and if this funding had the ability to pay the current year services. Budgetary and fiscal compliance determines if funds have been used in accordance with the governments legally adopted budget. Service effort costs and accomplishments assist users in assessing the costs and accomplishments of the government entity. Additional objectives include information about financial sources and how the funds are spent. The financial reporting should provide users with information about Government financed activities and if it has met its cash requirements. It should also include; if entities financial position has improved or deteriorated, the financial position and condition of government entity, and any legal or contractual restrictions or risks of resources....
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