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Comparing The Standards Of FASB And GASB

970 Words4 Pages

Standards for Financial Statements Jorge Garcia Keiser University ACG-4501 August 10th, 2014 Facts About FASB and GASB The Financial Accounting Standard Board (FASB) establishes standards for preparation of financial reports by non-governmental entities, this organization is recognized by the Security Exchange Commission (SEC) as authoritative, and it is also recognized by The American Institute of Certified Public Accountants. On the other hand, the Governmental Accounting Standard Board (GASB) establishes standards for financial reports done by U.S state and local government. This project will be about characteristic of each organization, as well as to compare and contrast their financial …show more content…

This function is very important because users are able to have accurate financial information that will improve local government’s credibility and accountability. Moreover, taxpayers are always concern about expenditures of their local government and how it could affect their economy, their neighborhood, their schools, and their social benefits. The General Accounting Standard Board has core values, some of them are: Independence, they are able to answer to all users without any influence of government. Besides that, integrity is another important part of the GASB values; they seek for honesty in their relationship with constituents, they also look for objectivity in decisions made by them, this includes taking in consideration constituents opinions. Finally, transparency is a value that allows people to give and interchange ideas and opinions with GASB. One of the requirements of GASB that state and local government must comply with is the Comprehensive Annual Financial Report (CAFR), which is usually audited by an independent auditor who will be based his work on GAAP regulations. There are three important parts of the Comprehensive Annual Financial Report that should be mentioned: 1. Introductory: This section is a guide to the reader about the …show more content…

Additionally, in case of companies and firms, they have assets that can be sold or transferred, and in case of liquidation recourses can be divided and distributed among stockholders, that scenario does not exist on nongovernmental entities. Another difference between FASB and GASB is the way they report the statement of cash flow, FASB uses both indirect and direct methods, however, GASB uses only indirect

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