Running head: GASB AND FASB ANALYSIS PAPER
Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis Paper
Mandy Diaz
University of Phoenix
Marie Romero
ACC 460 / Government and Non-Profit Accounting
March 30, 2010
Governmental Accounting Standards Board and Financial Accounting Standards Board
This paper will be aimed at comparing and contrasting governmental (GASB) which is Governmental Accounting Standards Board and proprietary (FASB) which is Financial Accounting Standards Board accounting. It will explain the objectives of the two standards boards and how they are similar and different. Last it will describe how the modified accrual basis of accounting differs from full
…show more content…
This is a situation in which those entities that are government owned are governed by GASB and those that are owned by the private sector are governed by the FASB. According to the current rules the GASB would consider the fact that the private sector special entities have their financial statements prepared in accordance to the FASB and this matter should be considered by the GASB when it is comparing financial statements of privately owned and state owned special entities. In other words the private entities continue to be governed by the FASB in this environment.
The objective of the GASB is to set and improve standards of local and state government financial accounting. GASB objectives are also to improve the government’s ability to show its performance to the public, to improve the information available to the public so that they can hold the government responsible, to guide all users of government financial reports and provide useful information to the users of the financial reports of government entities. The objective of the FASB is to set accounting standards for public companies in the US. Its objectives include improving the relevance and reliability, comparability and consistency, and convergence and quality of financial reporting. It also strives to keep standards current, rectify areas of deficiency in financial reporting and improving the understanding of the information in financial reports. The role of
The FASB works by their Rules of Procedure which describe the operating procedures. The Rules of procedure incorporate the FASB mission, and how the mission is accomplished, how they will hold their meetings and the overall workings of the FASB. The GASB also have their own Rules of Procedure which are set forth procedures in which they use to improve the standards of the financial accounting and reporting. The Rules of Procedure are another way in which the GASB and the FASB are very similar. They both use their mission statements as the basis for their Rules of Procedure. With their Rules of Procedure they implement how the mission statement tasks will be accomplished with the help of chairman and the officers. In both the FASB and the GASB they state in the Rules of Procedure they state the protocol for meetings and the voting requirements. The rules of procedure also state” Rules governing public announcements and the kinds of information made broadly available to the public ” (fasb.org).
The information in this report regarding the accounting standards for private companies is as stated in the proposal stage. The three options discussed are options being considered and the Accounting Standards Board (AcSB) has issued an
GASB Governmental Accounting Standards Board (Yes. The correct acronyms are GAAP Generally Accepted Accounting Principles; FASB Financial Accounting Standards Board; GASB Governmental Accounting Standards Board
The mission of the FASB is to establish and improve upon accounting policies and procedures to ensure accurate reporting of market resources to investors.
You use a perpetual inventory system and value the inventory using FIFO. Prior to making adjusting year-end entries you valued the inventory at the lower-of-cost or-market. Justify why you valued the inventory at lower-of-cost or-market.
The FASB ASC 330 Inventory provides primary authoritative guidance for the accounting for inventory. The predecessor literature is Accounting Research Bulletins (ARB) No.43 Chapter 4, paragraph 4 (Issued June, 1953) and Statement of Financial Accounting Standard (FAS) NO.151 Inventory cost- an amendment of ARB No.43, Chapter 4 (Issued November, 2004).
In 1973 the Financial Accounting Standards Board (FASB) was established to set the financial accounting standards in the United States of America for nongovernmental entities. These standards are collectively called U.S. Generally accepted Accounting Principles, or U.S. GAAP. The Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants acknowledge the authority of these standards (FASB, n.d). A “proven, independent due process” is used to collect the viewpoints of the financial statements prepares and users for the constant improvement of these standards. An Accounting Status Update(ASU) is not an authoritative source however documents the amendments to communicate the changes in the FASB Codification for a user to understand the reason and future of those changes (FASB, n.d).
14. In which paragraph of the standard audit report does the auditor communicate to the user that certain combining fund information in the financial statements is not part of the basic financial statements, but that such information has been subjected to auditing procedures and, in his or her opinion, is fairly presented in all material respects in relation to the basic financial statements?
This research project will inform the reader of the difference between the United States accounting standards and International accounting standards. The United States uses the Financial Accounting Standards Board (FASB) to issue financial reporting procedures. The International Financial Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB). There are proposals for the United States to adopt the International standards. Financial reporting procedures are debated about the United States using the Generally Accepted Accounting Procedures (GAAP) or following the global procedures. This
The GASB Statement No. 56 was initiated on April 16, 2009. The essence of the new ruling aims to integrate the accounting and financial guidelines of the American Institute of Certified Public Accountants (AICPA) with the GASB’s accounting procedures that concern the state and local government (“New Release,” 2009; “Statement No. 56,” 2009; “Summary of Statement No. 56,” n.d). The statement does not create new financial reporting guidelines or requirements nor imply amendments to the current policies. Rather, it “relocates the existing” guidelines from the “professional auditing standards (“Statement No. 56,” 2009, p. 11). There are three major areas that are taken into consideration, namely “related party transactions, “going concern” attributes
GASB Statement No. 34, Basic Financial Statements— and Management’s Discussion and Analysis—for State and Local Governments, was issued June 1999. The goal of GASB was “to make annual reports more comprehensive and easier to understand and use” (Governmental Accounting Standards Board, 1999). The four hundred and three page document has seven main sections that detail external reporting requirements. These seven requirements are “reporting
Under the economic globalization and the rapid development of Islamic finance in recent years, the business activities with Islamic countries became a worldwide focus. However, it is notable that the conventional accounting system would face a challenge with the compliance of Shariah. Therefore, the Islamic accounting standards AAOIFI were developed due to of the existing problem with the adoption of the convention accounting standards (IFRS). In this chapter, to illustrate the difference among IFRS and AAOIFI, the general description of these two accounting standards will be presented, followed by the distinguishing between the adoption as well as the comparison of some specific accounting treatments. At the
To fully adopt the full accrual accounting, senior levels of government urges governments to adopt full accrual accounting under recommendation The Public Sector Accounting Board of Chartered Accountants. The Auditor General has strongly recommended full accrual accounting as "…superior to the Government’s current accounting policies." Reason for implementing full accrual accounting will improve transparency and accountability because the Government’s balance sheet will provide a more comprehensive and clear vision picture of the Government’s assets and liabilities; and the annual
Under the economic globalization and the rapid development of Islamic finance in recent years, the business activities with Islamic countries became a worldwide focus. However, it is notable that the conventional accounting system would face a challenge with the compliance of Shariah. Therefore, the Islamic accounting standards AAOIFI were developed due to of the existing problem with the adoption of the convention accounting standards (IFRS). In this chapter, to illustrate the difference among IFRS and AAOIFI, the general description of these two accounting standards will be presented, followed by the distinguishing between the adoption as well as the comparison of some specific accounting treatments. At the
This study provides information about the emergence and adoption process of revenue recognition of FASB (Financial Accounting Standard Board) and International Accounting Standard Board (IASB). Its crucial financial reporting performance by business