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This paper will compare and contrast GASB and FASB accounting by explain the objectives of the two boards, explain how the two boards are similar, explain how the two boards are different, and explain how modified accrual basis of accounting differs from

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Introduction

GASB & FASB Analysis Paper Bridget Burns ACC/460 - Government and Non-Profit Accounting Joe Walthour Jr June 29, 2009 Two organizational authorities create standards for non-business accounting. These authoritative accounting and financial reporting standard-setting bodies are the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB). The GASB is the standard-setting body for government entities. The FASB is the standard-setting body for all nongovernmental entities, including not-for-profit organizations. This paper will compare and contrast GASB and FASB accounting by explain the objectives of the two boards, explain how the two boards are similar, explain how the two boards are different, and explain how modified accrual basis of accounting differs from full accrual basis of accounting. ...read more.

Middle

How GASB and FASB are similar GASB and FASB objectives both endorse the notion that financial reporting encompasses information on service efforts and accomplishments (Granof, M. H. 2007. p 21). GASB and FASB have many similar objectives. Both boards have the authority to set standards regarding financial reporting that will be useful to the user of the reports. Each board has an advisory council. The boards share a facility in Norwalk, Connecticut. How GASB and FASB are different The FASB stresses that external financial statements can "best meet the need by disclosing failure to comply with spending mandates that may impinge on an organization's financial performance or on its ability to provide a satisfactory level of service" whereas GASB makes budgetary and fiscal compliance a central concern of financial reporting (Granof, M. H. 2007. ...read more.

Conclusion

Government funds financial statements use the modified accrual method but government activities are reported on a full accrual method on government-wide financial statements. This paper compared and contrasted GASB and FASB accounting by explaining the objectives of the two boards, explaining how the two boards are similar, explaining how the two boards are different, and explaining how modified accrual basis of accounting differs from full accrual basis of accounting. The GASB and the FASB have developed objectives of financial reporting that stress the importance of providing information that enables users to assess interperiod equity and compliance with budgetary (or spending) mandates (Granof, M. H. 2007. p 28). The GASB and FASB have many similarities and differences. Government funds financial statements use the modified accrual method but government activities are reported on a full accrual method on government-wide financial statements. ...read more.

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