Essay Gasb and Fasb Analysis

696 Words Aug 13th, 2010 3 Pages
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
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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

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