FASB Vs GASB

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The differences between FASB and GASB; compare and contrast.
GASB: Governmental Accounting Standards Board
Main Objective: Develop, implement, and establish standards of accounting and financial reporting processes for governmental institutions. “Governmental institutions must answer to the citizenry and must justify the raising of public resources and the purposes for which they are used.”
Sub-objectives:
• Interperiod Equity – Financial reporting should provide adequate information to determine whether current year revenues were sufficient to pay for current year services.
• Budgetary and Fiscal Compliance – Financial reporting should prove whether resources obtained and used were in accordance with the institution’s legally adopted budget. Furthermore, the institution should also prove compliance …show more content…
• Financial reporting should provide information regarding economic resources, obligations, and net resources of an institution. These include the effects of transactions, events as well as circumstances that may change resources.
• Financial reporting should provide information about the performance of an institution during a period, measure periodic changes as well as information about the service efforts and accomplishments of that organization.
• Financial reporting should provide information how the organization spends its cash, information about its borrowing and repayment habits, and any other information regarding the institutions liquidity.
• Financial reporting should include explanations or interpretations to help users understand the provided financial information.
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