Gasb and Fasb Analysis
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GASB and FASB Analysis Paper
University of Phoenix
ACC/460
Government and Nonprofit Accounting
Silvana Moffitt
April 04, 2011
GASB and FASB Analysis Paper
GASB and FASB have plans and objectives regarding reporting procedures for specific organizations. GAAP exists, but how nonprofit and governmental agencies record financial transactions and financial information differs from other entities. Such differences are outlined by the appropriate accounting standards board in direct relation to the type of business or organization.
Governmental Accounting Standards Board (GASB) was created with the purpose of improving standards of state and local governmental accounting and financial reporting. By establishing and improving such standards, the GASB seeks to accomplish useful information for users of financial reports along with guiding and educating the public, which includes issuers, auditors, and users of such financial reports (“Mission, Vision, and Core Values“, n.d.). Financial Accounting Standards Board (FASB) was created with the purpose of improving standards of financial accounting and reporting that foster financial reporting by nongovernmental entities that communicate decision-useful information to investors and other financial report users (“Mission of the FASB“, n.d.).
The GASB’s primary objective is to set and implement generally accepted accounting standards specifically for nonprofit and governmental organizations, whereas the FASB’s primary objective is to set and implement financial reporting standards for all other businesses not classified as governmental or non-profit agencies. The primary focus of GASB is to generate financial statements catered to its users, who are the donors, whereas the FASB focuses primarily on reporting all financial transactions, thus reporting the amount of revenue and profit generated. Both boards look to establish and implement the most efficient way of financial reporting according...
University of Phoenix
ACC/460
Government and Nonprofit Accounting
Silvana Moffitt
April 04, 2011
GASB and FASB Analysis Paper
GASB and FASB have plans and objectives regarding reporting procedures for specific organizations. GAAP exists, but how nonprofit and governmental agencies record financial transactions and financial information differs from other entities. Such differences are outlined by the appropriate accounting standards board in direct relation to the type of business or organization.
Governmental Accounting Standards Board (GASB) was created with the purpose of improving standards of state and local governmental accounting and financial reporting. By establishing and improving such standards, the GASB seeks to accomplish useful information for users of financial reports along with guiding and educating the public, which includes issuers, auditors, and users of such financial reports (“Mission, Vision, and Core Values“, n.d.). Financial Accounting Standards Board (FASB) was created with the purpose of improving standards of financial accounting and reporting that foster financial reporting by nongovernmental entities that communicate decision-useful information to investors and other financial report users (“Mission of the FASB“, n.d.).
The GASB’s primary objective is to set and implement generally accepted accounting standards specifically for nonprofit and governmental organizations, whereas the FASB’s primary objective is to set and implement financial reporting standards for all other businesses not classified as governmental or non-profit agencies. The primary focus of GASB is to generate financial statements catered to its users, who are the donors, whereas the FASB focuses primarily on reporting all financial transactions, thus reporting the amount of revenue and profit generated. Both boards look to establish and implement the most efficient way of financial reporting according...