![]() These standards also help government officials demonstrate to their stakeholders their accountability and stewardship over public resources. ![]() Today, taxpayers, holders of municipal bonds, members of citizen groups, legislators, and oversight bodies rely on this financial information to shape public policy and make investments. state and local governments that follow GAAP. The GASB establishes accounting and financial reporting standards for U.S. ![]() The GASB’s standards are recognized as authoritative by state and local governments, State Boards of Accountancy, and the American Institute of CPAs (AICPA). More information on the FASB can be found here. Investors, lenders, and other users of financial information rely on financial reporting based on GAAP to make decisions about how and where to provide financing, and to help financial markets operate as efficiently as possible. The FASB establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations. The FASB’s standards are recognized as authoritative by many other organizations, including State Boards of Accountancy and the American Institute of CPAs (Rule 203, Rules of Professional Conduct, as amended May 1973 and May 1979). The FASB is recognized by the Securities and Exchange Commission as the designated accounting standard setter for public companies. The FASB and the GASB are responsible for ensuring that GAAP remains the high-quality benchmark of financial reporting so that investors, lenders, capital providers, and other users have access to the information they need to make sound decisions. The GASB establishes accounting and financial reporting standards for U.S.The FASB establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations. ![]() The Financial Accounting Foundation (FAF) is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut responsible for the oversight, administration, financing, and appointment of the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). Disclosures both supplement and explain amounts in the statements. Disclosure-what specific information is most important to the users of the financial statements.Presentation-what line items, subtotals and totals should be displayed in the financial statements and how might items be aggregated within the financial statements.Measurement-what amounts should be reported for each of the elements included in financial statements,.Recognition-what items should be recognized in the financial statements (for example as assets, liabilities, revenues, and expenses).For companies or not-for-profits, GAAP is set with the objective of providing information that is useful to investors, lenders, or others that provide or may potentially provide resources.Īn additional objective applies to financial reporting for state and local governments: to provide information that enables taxpayers and others who use governmental financial statements to hold governments accountable. The standards are known collectively as Generally Accepted Accounting Principles-or GAAP.įor all organizations, GAAP is based on established concepts, objectives, standards and conventions that have evolved over time to guide how financial statements are prepared and presented. The accounting standards developed and established by the Financial Accounting Foundation’s (FAF) standard-setting Boards-the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB)-determine how those financial statements are prepared. Results of operations (statement of revenues, expenses and changes in net position, statement of comprehensive income, etc.), and.Financial position (balance sheet, statement of net position).Specifically, financial reporting includes the following information: Financial reporting is the language that communicates information about the financial condition and operational results of a company (public or private), not-for-profit organization, or state or local government.
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |