Question

Why can't the GASB take a break from standards setting for a while?

Answer 1

GASB- GOVERNMENT ACCOUNTING STANDARD BOARD.

THE GOVERNMENT ACCOUNTING STANDARD BOARD IS THE SOURCE OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES(GAAP) USED BY STATE AND LOCAL GOVERNMENT IN U.S.

GASB SUBJECT IS LINKED TO FINANCIAL FOUNDATION AND FINANCIAL ACCOUNTING STANDARD BOARD.

GASB OBJECTIVE IS TO ESTABLISH AND IMPROVE STATE AND LOCAL GOVERNMENT ACCOUNTING AND FINANCIAL REPORTING IT HELPS THE PUBLIC.

WHY CAN'T THE GASB TAKE A BREAK FROM STANDARD SETTING FOR A WHILE:-

1) AS EVERY ORGANISATION IN U.S USE GASB FOR DECISION MAKING PURPOSE. SO IT BECOME DIFFICULT IF GASB BREAK STANDARD SETTING FOR A WHILE.

2)GASB HELP USERS MAKE BETTER INFORMED DECISION ABOUT TO INVEST CAPITAL, TO LOAN OR DONATE MONEY OR WHETHER TO SUPPORT A VOTER REFERENDUM. BY THIS BREAK IT CAN'T HAPPENS.

3)GASB STANDARDS ARE COST EFFECTIVE TO IMPLEMENT AND PROVIDE INVESTORS WITH RELEVANT INFORMATION. BY REMOVING THIS STANDARDS IT WILL BE DIFFICULT TO INVESTORS TO MAKE COST EFFECTIVE DECISIONS.

4) GASB STANDARD SETTING PROVIDE CLEAR, CONSISTENT AND TRANSPERENT FINANCIAL INFORMATION TO THEIR CONSTITUENTS. BY BRAKING DOWN THE STANDARD SETTING IT CAN'T PROVIDE THIS INFORMATION.

5) GASB STANDARD IS TO ESTABLISH FOR FINANCIAL REPORTING THAT PROVIDE DECISION USEFUL INFORMATION TO ASSIST INDIVIDUALS IN ASSESSING GOVERNMENT'S FINANCIAL CONDITION AND PERFORMANCE. TODAY POLICY HOLDERS, MUNICIPAL HOLDERS AND MEMBERS OF CITIZENS RELY ON THIS INFORMATION TO MAKE INVESTMENTS. THESE STANDARDS ALSO HELP GOVERNMENT OFFICIALS DEMONSTRATE TO THEIR CONSTITUENTS THEIR ACCOUNTABILITY AND STEWARDSHIP OVER PUBLIC RESOURCES. BY THE BREAK DOWN IT CAN'T FOLLOW THIS RULES.

6)PENSION REPORTING CAN'T TAKE PLACE IF GASB BREAK ITS STANDARD SETTINGS.

7)BY BREAKING THE GASB STANDARD SETTING, GASB DOES MEETS ITS TAX PAYERS OBLIGATION.