Question

250 WORDS

how GASB standards are reflected in the financial statements and what role GASB plays in the financial reporting process.

Answer 1

GASB (Governmental Accounting Standards Board) is private not-for-profit entity that is responsible for establishment and improvement of the standards of the financial reporting and accounting for the United States state and local governments. The GASB Accounting and Reporting Capabilities Principle specify a governmental accounting system must make it possible to fair presentation of the basic financial statements as in conformity with GAAP that consists of government wide as well as fund financial statement with full disclosure and to give supplementary information including the discussion and analysis of the management and required comparison of the budgetary information

The GASB's function is important because external financial reporting can provide financial accountability to the public and thus can be the basis for investment, credit, and many legislative and regulatory decisions. The mission of the Governmental Accounting Standards Board (GASB) is to establish and enhance standards of state and local governmental accounting and financial reporting that may result in useful information for users of financial reports and can act as a guide tool and educate the public, including issuers, auditors, and users of those financial reports. The Governmental Accounting Standards Board has been provided authority to establish accounting and financial reporting standards for state and local governmental entities, and governmentally-owned utilities, authorities, hospitals, schools, colleges and universities.

The GASB accomplishes its mission through an independent and independent process that objectively considers the views of all stakeholders, promotes broad participation, and is subject to an oversight by the Financial Accounting Foundation's Board of Trustees. The Rules of Procedure provides a description on the operating procedures of GASB’s, including the due process activities which are to be open to public observation or participation or to give transparent standards-setting process