Government and Not-For-Profit Accounting
GASB and FASB Comparison
The Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) have some similarities and differences even though it may seem on the surface to be the same. The fact the FASB created the GASB for governing not-for-profit and government organizations but with very different goals in mind. The same can be said for full accrual basis of accounting and modified accrual basis of accounting. Where full accrual accounting was developed to help a business organize their assets and liabilities, the modified accrual accounting has different ideas of what is important. In the next couple of paragraphs the differences and similarities will be explored. Compare and Contrast
The GASB and the FASB are similar in one way for sure. Both organizations are were created to help businesses or organizations follow a standard accounting method so no matter the business the reports could give the same information. The main difference is the FASB monitors the profit making companies but the GASB helps regulate state and local governmental organizations in 1984 (FASB). Both the FASB and the GASB pick and manage their members, making sure they have funding and what their general oversight will be for the organization (FASB). The FASB will identify problems or issues that are brought up from the stakeholders but in the GASB there are no stakeholders. The GASB is in place to help the public understand the standards they are requiring the organizations to follow (GASB). Accrual Basis of Accounting
When a business is looking at their financial reporting and accounting they will look at them in a different manner than a not-for-profit organization. A regular business needs to report a transaction when there is substantive economic impact (Granof, 39). So for them to be able to do this they will use the full accrual basis of accounting which will give...