Gasb and Fasb Analysis Paper

GASB and FASB Analysis Paper

By Jennifer R Carlson

ACC 460

Kelly Chamberlain

March 6, 2006

The Governmental Accounting Standards Board (GASB) is the board that “sets the accounting and financial reporting standards for state and local governments, whereas the Financial Accounting Standards Board (FASB) is the standard-setter for all other entities except the federal government.” (Granof, 2003, Ch 1 pp6) The GASB promotes accountability and allows the public to know the facts in regards to the uses of the resources. Inter-period equity shows whether the current-year’s revenues will pay for the current-year’s expenditures. Budgetary and fiscal compliance make sure that the funds and/or resources were used within the guidelines of the entity’s budget. Service efforts, costs, and accomplishments are shown in the financial reporting of the entities to help demonstrate the accountability with the governmental entity. (Granof, 2003, Ch 1, pp 13) The FASB sets the guidelines for non-governmental entities to provide the information on the profitability of the entity.

The cash flow statements are very similar