Saturday, December 21, 2019
Government Accounting Standards Board versus Financial...
In accounting, private companies are treated differently than governmental and non-profit companies. However governmental and non-profit companies use different reporting requirements from the private sector. The requirements for governmental companies use the Government Accounting Standards Board (GASB), whereas profit and non-profit companies use the Financial Accounting Standards Board. This paper will explain the purpose, discus the similarities, and differences between the GASB and FASB. Governmental Accounting Standards Board (GASB) is the independent organization that improves and establishes the accounting standards for the United States and local governments. It was established in 1984 by an agreement by the Financialâ⬠¦show more contentâ⬠¦The mission of the FASB is to ââ¬Å"establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities that provides decision useful information to investors and othe r users of financial reports (FASB 2014).â⬠The FASB is also an independent organization that is different from any other business and professional organization. The FASB has seven members, and they serve full time. They are appointed for five year terms, and are eligible for an additional five year term. The FASB uses due process to implement the process of the standard setting process. The rules for setting or changing standards include; identifying financial reporting issues from stakeholders or other sources, and then the FASB decides whether or not to add the issue to the agenda. Once that is done the boards deliberates at one or more public meetings, and an Exposure Draft is issued for stakeholder input. The FASB staff then analyzes letters, discussions, and any other information received which the Board will redeliberate on the proposed provision at one or more public meeting, and then the Board will issue the standard update. The FASB uses what is called a cost benefit analysis which is a process for calculating and comparing the benefit cost to the proposed policy (FASB, 2014). The GASB and FASB have quit a few similarities. They both aimShow MoreRelatedEssay Explaining Basic Accounting Concepts and Business Structures754 Words à |à 4 PagesExplaining Basic Accounting Concepts and Business Structures To understand accounting there are several key concepts and terms to be familiar with. One must know where Generally Accepted Accounting Principles came from as well as how businesses form. Sources of Generally Accepted Accounting Principles The Securities and Exchange Commission (SEC), American Institute of Certified Public Accountants (AICPA), Financial Accounting Standards Board (FASB), and the Government Accounting Standards Board (GASB)Read MoreZeff 19785820 Words à |à 24 PagesRISE OF ECONOMIC CONSEQUENCES The impact of accounting reports on decision making may be the most challenging accounting issue of the 1970s. by Stephen A. Zeff Since the 1960s, the American accounting profession has been aware of the increasing influence of outside forces in the standardsetting process. Two parallel developments have marked this trend. First, individuals and groups that had rarely shown any interest in the setting of accounting standards began to intervene actively and powerfullyRead MoreAccounting Standards Of An Economy2023 Words à |à 9 Pagesunethical practices. Therefore, financial reporting is not LEFTOUT as standards of authentication are set; these accounting standards play vital roles in the direct and effective functioning of businesses and capital markets. They provide shareholders, other users and the general public of financial information with key elements of a companyââ¬â¢s financial control and systems which have been reported and assessed on. Its key objective is to standardize general accounting practices globally, ensuring fairRead MoreEgyptââ¬â¢s Accounting Standards (Eas) Against Ifrs the Reason Behind Compliance and the Main Differences4499 Words à |à 18 Pages1 Egyptââ¬â¢s Accounting Standards (EAS) against IFRS: The Reason behind Compliance and The Main Differences. Ahmed Mostafa Eliwa German University in Cairo Supervised By: Prof: Dr. Ehab K. A. Mohamed 2 Chapter 1: IFRS Historical Background 1.1 Introduction The purpose of this chapter is to gather information about the history of the international financial and reporting standards (IFRS), the committee that issued them, and what the reasons behind issuing such standards are to be agreed andRead MoreIfrs Adoption Affects Taxes, The Mergence Or Adoption Of The International Financial Reporting Standards1400 Words à |à 6 PagesIFRS Adoption Affects Taxes The mergence or adoption of the International Financial Reporting Standards (IFRS) in the United States will affect the taxes a company will pay due to the differences in IFRS and U. S. Generally Accepted Accounting Principles (GAAP). One major hurdle to this happening is to get the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) to agree on exactly how this will happen. For most U.S. companies, a major concern isRead MoreCons and Pros of Internet16245 Words à |à 65 PagesAccounting and Business Research, International Accounting Policy Forum. pp. 5-27. 2006 5 International Financial Reporting Standards (IFRS): pros and cons for investors Ray Ball* Abstractââ¬âAccounting in shaped by economic and political forces. It follows that increased worldwide integration of both markets and politics (driven by reductions in communications and information processing costs) makes increased integration of financial reporting standards and practice almost inevitable. But mostRead MoreIntermediate Accounting 7e by Spiceland TB16595 Words à |à 67 Pagesï » ¿Intermediate Accounting by Spiceland 7th Edition Testà Bankà Contact me here sellertbsm2014@hotmail.com to download the test bank INSTANTLY!!! PRICE FOR THE TEST BANK, SOLUTION MANUAL AND BOOK PDF: Test Bank 20$ USD Solution Manual 20$ USD BooK PDF 30$ USD à This is aà sample chapter Chapter 01 Environment and Theoretical Structure of Financial Accounting à True / False Questions à 1. The primary function of financial accounting is to provide relevant financial information to partiesRead MoreConvergence of Ifrs and Us Gaap15636 Words à |à 63 Pagesconvergence of IFRS and US GAAP in the United Statesââ¬â¢ ââ¬Å"I declare that this dissertation is my own original work and has not been submitted elsewhere, wholly or partly, in the fulfilment of the requirements of this or any other award. Academic citation standards have been maintained and I have made due acknowledgement to the work of others where used in direct quotation and general reference.â⬠Signed ____________________________________________________________________ Acknowledgements First of all I wouldRead MoreMasters of the Universe155228 Words à |à 621 PagesFASB material, copyright à © by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, is reproduced with permission. This publication is provided as an information service by the Accounting Standards and Communications Group of Deloitte Touche LLP. It does not address all possible fact patterns and the guidance is subject to change. Deloitte Touche LLP is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or otherRead MoreFinancial Environment Comparative Summary Essay example1339 Words à |à 6 PagesFinancial Environment Comparative Summary The financial structures of health care entities not-for-profit, for-profit, and government are different with funding, ownership, and type of services provided. Financial managers, financial markets, and investors are the components that make up the financial environment. Financial managers rely on investors to supply funds through financial markets when determining whether to use debt or equity financing. To ensure full utilization of financial resources
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.