• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Accounting section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Accounting essays

  1. An Analysis Of harmonization issues of accounting standards

    What are the regulations of the influences? 1.4 Research Innovation The following part will explain the innovation beyond the research for this paper: The traditional study only uses the differences in net profit to decide that if there are any significant differences are there between CAS and IFRS.

  2. Financial statement analysis

    Financial Leverage Quick Ratio WORKING CAPITAL/FUNDING GAP ANALYSIS SUSTAINABLE GROWTH RATE ANALYSIS CASH SUFFICIENCY ANALYSIS Accounts Receivable Turnover Sustainable Growth Rate Dividend Payout Ratio Days Receivable Inventory Turnover Days Inventory Days Payable Funding Gap APPENDIX V: OTHER RATIOS Operating Assets Applying spread analysis, it is possible to derive additional insight

  1. Accounting For Leases by Lessors. This report is a document that is outlining ...

    * Amortize the right-of-use asset on a systematic basis that reflects the pattern of consumption of the expected future economic benefits (Financial accounting standard board 15.11.11) *3 This is known as the IASB17 leasing standard. The standard states that the asset leased would go into the lessee balance sheet as

  2. Two-page report if an aggressive takeover should occur on Fortescue Metals Group Ltd (FMG)

    It was anticipated that exports will reach 354.9 million tonnes in 2010, an increase of 21%, driven by demand from China, which, encouraged by the economic recovery, is beginning to rebuild stockpiles of the material. By 2013, it was estimated that Brazil could reach 443.3 million tonnes of iron ore exports, compared to an estimated 549.6 million tonne from Australia.

  1. Critical review on Accounting for varieties of capitalism: The case against a single set ...

    Thirdly, most private individuals often pay attention on their personal saving and the investment often delegated to the banks or financial intermediaries. Fourthly, the assumption of security prices supply all relevant information would be wrong because the markets are imperfect so the perfect risk sharing does not exist.

  2. Explain the major role and objectives of financial accounting.

    Information relevance is therefore important in accounting since it can help the users predict the future trends of the enterprise or help confirm and collect any past predications. Therefore, this helps assist the financial statement readers to make best decisions about investment which can influence the well-being of the enterprise.

  1. My report on The International Accounting Standard Board (IASB) - frameworks and standards.

    Advantages of conceptual framework: The situation is avoided where standards are developed on a patchwork basis. Where a particular accounting problem is recognised as having emerged resources can then be channeled into standardising accounting practice in that area. The development of national standards has been subject to considerable political interference from interested parties.

  2. The Effect of Islamic Economy on International Accounting Standards

    in the eighteenth century and which was brought to the new world by the Puritans was related to a certain aspect of Protestant ethics which emphasized the virtue of hard work and the amassing of wealth in contrast to Catholic ethics.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work