What is the Government Accounting Standards Board (GASB)?
The Government Accounting Standards Board (GASB), a private, non-governmental body, develops accounting reporting standards (GAAP) for US state and local governments.
Government Accounting Standards Board Knowledge
In 1984, the Government Accounting Standards Board became independent and non-political. The board aims to provide clear, uniform, transparent, and comparable financial reporting for state and local governments, while FASB does the same for the federal government. Financial information is crucial for shaping public policy and investing by stakeholders such as taxpayers, municipal bondholders, politicians, and oversight organizations.
Functions of GASB
The GASB’s open and impartial procedure invites stakeholder engagement and objectively assesses all their viewpoints. GASB invited public comment in June 2022 on providing government financial statement users with crucial information regarding risk and disclosure for state and local governments.
Supervision and Funding
The boards run the GASB. A chair and vice chair lead a seven-member board. FAF Board of Trustees members serve five-year terms and up to 10 years. The vice chair and five other board members work part-time, while the chair works full-time. GASB members are qualified in government accounting and finance and care about public interest in accounting and financial reporting.
The Financial Accounting Foundation (FAF) Board of Trustees oversees the GASB, selecting board members and funding the FASB. Thus, the GASB relies on accounting support fees from municipal bond brokers and dealers. Section 978 of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act introduced this financing method.
The GASB Mission
On the GASB’s site, “The collective mission of the GASB, the FASB, and the FAF is to establish and improve financial accounting and reporting standards to provide useful information to investors and other users of financial reports and educate stakeholders on how to most effectively understand and implement those standards.” In that sense, the GASB bases its policy on several intelligence sources.
Consultative Teams
The GASB uses consultation groups and task teams to examine varied viewpoints. Consultative groups investigate accounting and financial reporting standards agenda issues. Task forces handle board technical initiatives. Both organizations advise the GASB to make the best judgments for taxpayers, finance, and businesses.
Conclusion
- The private, non-governmental Government Accounting Standards Board (GASB) sets state and local government accounting reporting standards.
- The GASB oversees GAAP.
- Clear, consistent, open, and comparable financial reporting is the board’s goal.
