The Similarity and Difference between FASB & GASB Financial Reporting Saintania Bien-Aime
Governmental/ Institutional Accounting: ACG4501
April 15, 2012
The accounting and financial reporting standards are one of the source that profit businesses and governmental not-for-profit organizations, which has been created by the Accounting standards Board (FASB). However, accounting and financial reporting standards that apply for state and local governments in America are created by the Governmental Accounting Standards Board (GASB). E. Wilson, J. Reck & S. Kattelus (2010) conclude that “Specifically, the FASB sets standards for for-profit business organizations and governmental not-profit organizations; the GASB sets standards for state and local governments, governmental not-for-profit organizations” (p.4). The intent of this paper is to compare and contrast Financial Accounting Standard Board, and Governmental Accounting Standard Board. CPA’s are responsible for knowing if the organizations are governmental or nongovernmental in order to apply General Accepted Accounting Principles (GAAP), because that will help them to follow the hierarchy of general accepted accounting standard when preparing a financial statement.
The Similarity and Differences between FASB & GASB
The Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) are describing as parallel organizations under the oversight of the Financial Accounting Foundation (FAF). However, auditors need more guidance in order to audit and accounting of the AICPA under both Financial Accounting Standards Board and Governmental Accounting Standard Board, because it recommend for them to have governmental character. Under the Governmental Accounting Standards Board (GASB) financial reporting as sets a standard that allowed the content of the comprehensive annual financial statement reporting of state or local government...
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Facts about FASB. (n.d.) Retrieved April 6, 2012 from: http://www.fasb.org/facts
Foltin, C. (2010, February). A long and winding road: 25 years of GASB. The CPA Journal, 80(2), 22+. Retrieved from http://go.galegroup.com.ezp-01.lirn.net/ps/i.do?id=GALE%7CA220512983&v=2.1&u=lirn_crevc&it=r&p=GPS&
Pappas, J.C. (2012). FASB Responds to Financial Accounting Foundation’s Post-Implementation Review Report on FIN 48. Retrieved April 6, 2012 from: http://www.marketwatch.com/story/fasb-responds-to-financial-accounting-foundations-post-implementation-review-report-on-fin-48
Wilson, E., Reck, J. & Kattelus, S. (2010). Accounting for Governmental & Nonprofit Entities. (15th ed.).New York, NY: McGraw-Hill.
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