Preview

Gasb and Fasb Comparision

Good Essays
Open Document
Open Document
630 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Gasb and Fasb Comparision
GASB and FASB Comparison
Government and Not-For-Profit Accounting

GASB and FASB Comparison The Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) have some similarities and differences even though it may seem on the surface to be the same. The fact the FASB created the GASB for governing not-for-profit and government organizations but with very different goals in mind. The same can be said for full accrual basis of accounting and modified accrual basis of accounting. Where full accrual accounting was developed to help a business organize their assets and liabilities, the modified accrual accounting has different ideas of what is important. In the next couple of paragraphs the differences and similarities will be explored.
Compare and Contrast The GASB and the FASB are similar in one way for sure. Both organizations are were created to help businesses or organizations follow a standard accounting method so no matter the business the reports could give the same information. The main difference is the FASB monitors the profit making companies but the GASB helps regulate state and local governmental organizations in 1984 (FASB). Both the FASB and the GASB pick and manage their members, making sure they have funding and what their general oversight will be for the organization (FASB). The FASB will identify problems or issues that are brought up from the stakeholders but in the GASB there are no stakeholders. The GASB is in place to help the public understand the standards they are requiring the organizations to follow (GASB).
Accrual Basis of Accounting When a business is looking at their financial reporting and accounting they will look at them in a different manner than a not-for-profit organization. A regular business needs to report a transaction when there is substantive economic impact (Granof, 39). So for them to be able to do this they will use the full accrual basis of accounting which will give


References: Financial Accounting Standards Board. FASB. 2010 Retrieved from on August 29, 2010 from http://www.fasb.org/jsp/FASB/Page/HomePage&cid=1218220071430 Governmental Accounting Standards Board. GASB. 2010. Retrieved from on August 29, 2010 from http://www.gasb.org/cs/BlobServer Granof, M. H. (2007). Government and Not-for-Profit Accounting: Concepts and Practices. Hoboken, NJ: John Wiley & Sons, Inc..
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    ACC 460 Week 4 DQs
    • 483 Words
    • 3 Pages

    ACC 460 Week 4 DQs

    ACC 460 Week 1 Individual Assignment Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis Paper…

    • 483 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    ACC 460 Week 1 DQs
    • 484 Words
    • 3 Pages

    ACC 460 Week 1 DQs

    ACC 460 Week 1 Individual Assignment Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis Paper…

    • 484 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Comparing the Gaap and Ifrs
    • 1065 Words
    • 5 Pages

    Comparing the Gaap and Ifrs

    There have been proposals that have been working on with regard to the replacement of GAAP (Generally Accepted Accounting Principles) with IFRS (International Financial Reporting Standards) as used in the accounting and financial reporting aspects. Such convergence requires that the functions of the GAAP standards be added to the IFRS. The International Accounting Standards Board (IASB) developed the IFRS which is a less-detailed financial reporting system.…

    • 1065 Words
    • 5 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Fasb System Orientation
    • 740 Words
    • 3 Pages

    Fasb System Orientation

    The purpose of this paper is to determine why the Financial Accounting Standard Board (FASB) set-up the codification of Generally Accepted Accounting Principles (GAAP). In the following paragraphs the purpose and reason are defined. The break-down of the nine main areas are described with a break-down of each area. An accounting professional will use these areas many times in his or her career, so the knowledge offered is important.…

    • 740 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Gasb & Fasb
    • 675 Words
    • 3 Pages

    Gasb & Fasb

    The Governmental Accounting Standards Board oversees the federal, state, and local governments with the basis of accountability. With that the GASB holds the government accountable to the citizens it represents. This means the government entities must show its constituents the money being raised is going to exactly what it was claimed for. An example of this would be a raise in taxes to assist in making gasoline safer for the environment. The GASB has broken down this accountability into three sub-objectives, the first is interperiod equity. Interperiod equity is a means of financial reporting that determines if there is enough current year money to pay for the current year needs. It also explains whether or not individuals in need of certain governmental services were pushed to the taxpayers. The second sub-objective is budgetary and fiscal compliance meaning that this reporting explains where funds came from to take care of services needed by the citizens. The third and final us service effort costs and accomplishments which means that this type of reporting shows the benefit of the programs that were used by citizens and how beneficial they were to the communities. The financial accounting standards board is much like the GASB until you take a closer look at its agenda and who actual utilizes the reports.…

    • 675 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    The Requirements of Sfas 116 & 117 & Their Effect on Financial Statements
    • 287 Words
    • 2 Pages

    The Requirements of Sfas 116 & 117 & Their Effect on Financial Statements

    References: Granof, Michael H., Khumawala, Saleha B., (2011). Government and Not-For-Profit Accounting (5th ed.). River City, NJ: John Wiley & Sons, Inc.…

    • 287 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Gasb and Fasb Analysis Paper
    • 631 Words
    • 3 Pages

    Gasb and Fasb Analysis Paper

    The Governmental Accounting Standards Board was created in 1984 as an independent, professional body to establish standards of accounting and financial reporting applicable to state and local governmental entities. It was formed after agreement by the Financial Accounting Foundation, the American Institute of Certified Public Accountants, the Government Finance Officers Association, the National Association of State Auditors, Comptrollers and Treasurers, and the seven organizations representing state and local government officials. The difference between modified accrual accounting and full accrual accounting is that modified accrual accounting is a method under which revenues are recognized in the period they become available and measurable, and expenditures are recognized in the period the associated liability is incurred. Most government accounting follows this method; and full accrual accounting is a system of accounting in which revenues are recorded when…

    • 631 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Fasb And Gasb Comparison Essay
    • 606 Words
    • 3 Pages

    Fasb And Gasb Comparison Essay

    For-profit business is driven by profit earnings. Financial statements provide information in relation to that performance. For-profit businesses will prepare reports based on the Financial Accounting Standards Board (FASB). Not-for-profit businesses are not driven by the same motivations and are hold to the Governmental Accounting Standards Board (GASB). Three distinctions set GASB organizations apart. 1) Receipt of significant recourses that are not expecting proportionate repayment or economic benefits. 2) Operations other than to provide goods or services at a profit equivalent. 3) Absence of defined ownership that can be sold, transferred, or redeemed (Wilson and Kattelus, 2002). This paper will briefly discuss some of the objectives, differences, and similarities of FASB and GASB. It will also discuss governmental regulations in the application of standards and reporting requirements.…

    • 606 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Summary on Research for Accounting Changes and Error Analysis
    • 1157 Words
    • 5 Pages

    Summary on Research for Accounting Changes and Error Analysis

    Companies have always faced issues of how to reflect changes in accounting methods and error corrections in financial statements. A change in accounting principle results when an entity adopts a generally accepted accounting principle different from the one it used previously (Hall 2007). A presumption exists that an accounting principle once adopted shall not be changed in accounting for events and transactions of a similar type (Financial Accounting Standards Board). It is preferred that consistent use of the same accounting principle from one accounting period to another is used because it enhances the utility of financial statements for users by facilitating analysis and understanding of comparative accounting data. Consistent use provides a dimension of high-value financial statements that assist in analysis and enhance comparability (Bloom and Fuglister 2006). However, there are times when changes are needed. A change in accounting principle is not considered at the initial adoption of the principle or modification of an accounting principle necessitated by transactions (Financial Accounting Standards Board). A company is only allowed to change an accounting principle if the change is required a newly issued codification update or the entity can justify the use of an allowable alternative accounting principle on the basis that it is preferable (Financial Accounting Standards Board). Any of these may require an entity to change an accounting principle. Such a requirement is sufficient justification for making a change in accounting principle. The burden of justifying other changes in accounting principle rests with the reporting entity making the change (Williams and Carcello, FASB Statement No. 154, Accounting Changes and Error Correction. 2005).…

    • 1157 Words
    • 5 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    acc/537 outline
    • 288 Words
    • 3 Pages

    acc/537 outline

    Category A (most authoritative): FASB standards, interpretations, and staff positions; APB Opinions; AICPA Accounting Research Bulletins…

    • 288 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Financial Accounting Standards Board Analysis Paper
    • 704 Words
    • 3 Pages

    Financial Accounting Standards Board Analysis Paper

    The purpose of this paper is to review, compare, and show the contrast between the two accounting standard boards; Governmental Accounting Standards Board (GASB), and the Financial Accounting Standards Board (FASB). The objectives of both Boards will be discussed as well as similarities and differences with each. The topic will then review modified accrual basis of accounting and how it differs from full accrual accounting.…

    • 704 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Week 2 Ind assignment
    • 1110 Words
    • 4 Pages

    Week 2 Ind assignment

    1. The traditional business model of accounting is inadequate for governments and not-for-profit organizations primarily because businesses differ from governments and not-for-profit organizations in that…

    • 1110 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Better Essays

    Comparing GASB And FASB Financial Reporting
    • 1169 Words
    • 5 Pages

    Comparing GASB And FASB Financial Reporting

    Auditors need to provide important decision in order for the investor’s to review client’s financial reports. However, Financial Accounting Standards Board plays major parts of understanding independent sector of all other companies and professional organization. A private sector is established by Financial Accounting Standards Board, which cause these standards to be well-organized and performance of the economy investors, creditors, auditors, and certified public accountant to have an analogous financial statement…

    • 1169 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Hannin
    • 1275 Words
    • 6 Pages

    Hannin

    1. GASB set the accounting and financial reporting standards for state and local government in the US. GASB also set accounting and financial reporting standards for governmentally related not for profit organizations.…

    • 1275 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Fasb Convergence
    • 543 Words
    • 3 Pages

    Fasb Convergence

    The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) were both formed in 1973. The FASB is the organization, in the private sector, for establishing standards of financial accounting that governs the preparation of financial reports by non governmental entities. The IASB is an independent private sector body that develops and approves international financial reporting standards. These two have been working toward the same goal since they were formed. Today the IASB and the FASB are working on a joint venture referred to as the Convergence Project.…

    • 543 Words
    • 3 Pages
    Satisfactory Essays
    Read More

Related Topics