GASB and FASB Analysis Paper
The Governmental Accounting Standards Board and the Financial Accounting Standards Boards were put in place to assist in regulating the private sector, federal, and state and local governments. These regulations that are in place are to hold he sector accountable for its accurate financial reporting and documentation. I ask how these two divisions differ in its objectives and how to they regulate each party it governs. The Governmental Accounting Standards Board oversees the federal, state, and local governments with the basis of accountability. With that the GASB holds the government accountable to the citizens it represents. This means the government entities must show its constituents the money being raised is going to exactly what it was claimed for. An example of this would be a raise in taxes to assist in making gasoline safer for the environment. The GASB has broken down this accountability into three sub-objectives, the first is interperiod equity. Interperiod equity is a means of financial reporting that determines if there is enough current year money to pay for the current year needs. It also explains whether or not individuals in need of certain governmental services were pushed to the taxpayers. The second sub-objective is budgetary and fiscal compliance meaning that this reporting explains where funds came from to take care of services needed by the citizens. The third and final us service effort costs and accomplishments which means that this type of reporting shows the benefit of the programs that were used by citizens and how beneficial they were to the communities. The financial accounting standards board is much like the GASB until you take a closer look at its agenda and who actual utilizes the reports. The Financial Accounting Standards Board is for not for profit businesses which has the same financial reporting standards of proving dollars spent and why except for the fact that...
References: Granof, M. H. & Khumawala, S. B. (2011). Government and not-for-profit accounting: Concepts & practices. (5th ed.) Hoboken, NJ: John Wiley & Sons.
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