Gasb And Fasb Analysis Paper
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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-years revenues will pay for the current-years expenditures. Budgetary and fiscal compliance make sure that the funds and/or resources were used within the guidelines of the entitys 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 in both GASB and FASB. They both show cash inflows/outflows relating to operating, financing, and investing activities. GASB cash flow statements divide financing activities into non-capital and capital and related financing activities. The acquisition of capital assets is a capital