Abstract: This chapter provides a background on the development and purpose of governmental accounting standards. Currently, governmental accounting standards are established by the Governmental Accounting Standards Board (GASB). The GASB is a "sister" organization to the Financial Accounting Standards Board (FASB). Both the FASB and the GASB are overseen by the Financial Accounting Foundation (FAF), an independent, private-sector organization that, among other things is responsible for the oversight, administration, and finances of the GASB and FASB. The chapter discusses objectives of governmental accounting and financial reporting, communication methods, elements of financial statements, and hierarchy of governmental accounting standards. The GASB considered three factors in determining the financial reporting objectives for governments. These three factors are: accountability and interperiod equity; characteristics of information in financial reporting; and limitations of financial reporting. The chapter further describes why these are important factors in determining the objectives of financial reporting for governments.
Publication Year: 2017
Publication Date: 2017-07-19
Language: en
Type: other
Indexed In: ['crossref']
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