Accounting Standards Advisory Board provides accounting standards for congressional oversight groups, executive agencies, and other users of federal financial information. FASB: Financial Accounting Standards Board provides standards within the private that govern the preparation of financial reports by nongovernmental entities GASB:
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reporting for the federal government. When it comes to local and state governments, the authority or the board that dictates the accounting related principles and rules is GASB. GASB stands for Governmental Accounting Standards Board. Last, but not least there is FASB, which stands for Financial Accounting Standards Board. FASB dictates principles of accounting and standards for the private sector, and the
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CHAPTER 1 Governmental and Nonprofit Accounting: ENVIRONMENT AND CHARACTERISTICS ANSWERS TO QUESTIONS QUESTION 1-1 a. The similarities of accounting for profit-seeking and G&NP organizations include: 1. Double-entry system of accounts. 2. Most accounting mechanics, e.g., basic transaction documents, journals, ledgers, charts of accounts. 3. Where a G&NP organization has a business-type activity, e.g., a municipal electric utility, the accounting largely parallels that
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enforced by several other agencies. This paper will discuss some of these regulatory bodies and how a company must comply with these agencies. The Securities and Exchange Commission (SEC), Financial Accounting Standards Board (FASB), Governmental Accounting Standards Board (GASB), Internal Revenue Service (IRS) and other regulatory bodies set accounting standards and requirements for accounting reporting frequency and presentation. The SEC was created in during the great depression in 1934
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“Accounting – the process of identifying, measuring, and communicating economic information to permit informed judgements and decisions by users of the information.” (Warren, Reeve, & Fess, 1999, p. 5). Accounting, as so many other occupations has a rich history behind it, as well as it’s own language. Throughout this rich history it is clear to see that certain organizations relating to the accounting profession have made significant strives to improve the reliability and accuracy of what is
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ACC 430 Governmental Accounting (Online) Chapter 1 Questions 1-2. Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Board’s Why Governmental Accounting and Financial Reporting Is-and Should be-Different. 1. Organizational Purposes-A governments organizational purpose is to provide public services for the well-being of citizens regardless of profit. Whereas a for-profit business’s
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respectively. The head of the SEC is appointed by the President of the United States. When the SEC was formed there was no standards-issuing body. However, rather than set standards, the SEC encouraged the private sector to set them. The SEC has stated that FASB standards are considered to have authoritative support. Committee on Accounting Procedure (CAP) In 1939, encouraged by the SEC, the American Institute of Certified Public Accountants (AICPA) formed the Committee on Accounting Procedure (CAP)
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of measurement focus of expendable fund accounting is expenditures – the amount of financial resources expended during the period for. Q1-6 The GASB is responsible for establishing accounting and financial reporting standards for activities and transactions of state and local governments including government non-profit organizations. Meanwhile FASB is for all other organizations including nongovernment nonprofit organizations. Then we have AICPA that evaluates the pronouncements of the various
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Traditionally the budget takes center stage and one of the most public decisions in the government. They may have several budgets for the different funds in government and may be backed by the force of law. Nonprofit accounting is guided by FASB Statement of Financial Accounting Standards Nos. 116 and 117. Nonprofits usually don't have a revenue stream similar to that of a for-profit business, which gets funds through the selling of goods or services. Instead, a nonprofit receives donations
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Chapter 18 1. The Financial Accounting Standards Board (FASB) sets accounting standards used by private not-for-profit colleges and universities. 2. Current and potential contributors and other interested parties want to know how financially stable these organizations are and how they use the monies they receive. Future gifts or grants are often based, at least in part, on the organization’s ability to convince donors that it uses its resources wisely to accomplish state goals. Financial
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