Question

What is your view on this? Please see below.

The GASB's goal is targeted at improving and establishing standards in terms of usability for all users and stakeholders combined with the effort of resolving government transparency and accountability. The world of finance and technology are complex and constantly evolving. In order for standards to remain relevant, we must keep up with that pace. Standards that have become outdated need to be reexamined; those standards are fundamentally interconnected with other standards creating potential implementation issues, to which, must also be addressed, in a timely manner, in an effort to limit confusion.

Answer 1

Financial reporting is a communication which takes place between governments and financial report users. The GASB’s main goal is to set accounting standards that yield information that users need to assist them in making decisions about the government and to assist them in assessing whether it has been accountable for the resources that have been entrusted to it.While we believe that sound financial reporting helps financial report users to make informed decisions, it is important to note that the GASB always carefully weighs the cost of making changes against the benefit of those changes to users.

Though GASB claims that it is working with all its power to bring about the changes that is required to be made in the accounting system. But we are not able to see that in the current scenario. The way the things are developing in the GASB, interference is required. They need to wake up from sleep and start to do something that will do some good to the standards. The outdated standards are not examined again which is creating a lot of problem which needs to be addressed to. The situation turns out to be more problematic when these standards are linked with other standards and so the situation worsens because they are not able to find a way to deal tith this problem. So it has now come to the standards which are the most relevant and are becoming outdated day by day which needs to be addressed as soon as possible.