Comparing GASB And FASB Financial Reporting

The Similarity and Difference between FASB & GASB Financial Reporting
Saintania Bien-Aime
Governmental/ Institutional Accounting: ACG4501
Keiser University
April 15, 2012

Abstract
The accounting and financial reporting standards are one of the source that profit businesses and governmental not-for-profit organizations, which has been created by the Accounting standards Board (FASB). However, accounting and financial reporting standards that apply for state and local governments in America are created by the Governmental Accounting Standards Board (GASB). E. Wilson, J. Reck & S. Kattelus (2010) conclude that “Specifically, the FASB sets standards for for-profit business organizations and governmental not-profit organizations; the GASB sets standards for state and local governments, governmental not-for-profit organizations” (p.4). The intent of this paper is to compare and contrast Financial Accounting Standard Board, and Governmental Accounting Standard Board. CPA’s are responsible for knowing if the organizations are governmental or nongovernmental in order to apply General Accepted Accounting Principles (GAAP), because that will help them to follow the hierarchy of general accepted accounting standard when preparing a financial statement.

The Similarity and Differences between FASB & GASB
The
Auditors need to provide important decision in order for the investor’s to review client’s financial reports. However, Financial Accounting Standards Board plays major parts of understanding independent sector of all other companies and professional organization. A private sector is established by Financial Accounting Standards Board, which cause these standards to be well-organized and performance of the economy investors, creditors, auditors, and certified public accountant to have an analogous financial statement