Fasb & gasb
The Financial Accounting Standards Board’s (FASB) mission is to improve and establish standards of financial reporting and accounting for the education and guidance of the public, including users of financial information, along with issuers and auditors.
The FASB works to improve financial reporting via concentrating its focus on reliability and relevance and on consistency and comparability. The FASB is also tasked with keeping all standards current, reflecting all changes in methods of conducting business, along with the ever changing liquid environment of the economy. They watch carefully for any areas of deficiency in financial reporting and improve practices through a standard setting process. The FASB is desirous of improving the common understanding of all the information that is compiled into financial reports. Promoting international accounting standards is also a goal of the FASB. (Retrieved 09/25/06 from source, http://www.fasb.org/facts/)
The GASB has been hard at work, since its inception in 1984, studying the use of government’s performance measurement. The main purpose of the GASB is to improve and establish standards for state and local governmental financial reporting and accounting procedures. The GASB has been given the task of setting standards that help ensure government is publicly accountable and provides the general public accurate information. This accuracy of information is crucial for making sound social, political and economic decisions. The GASB guides and educates the auditors, issuers and general public, regarding financial reports. (Retrieved 09/25/06 from source, http://www.seagov.org/sea gasb project/)
The FASB is a format that private institutions implemented in 1997 where the GASB is the format phased in for public institutions, beginning in 2002 and spanning over a three year period. The GASB will be applicable to all institutions that utilize government accounting standards by 2004.
Operation and plant maintenance are not considered a separate function by the FASB. These expenses are instead allocated to other functions such as academic support, research or instruction. A plant’s maintenance and operation is listed as a separate and distinct function on the Old Form and GASB. As a result; a GASB institution would have fewer expenses than a comparable FASB one, due to the FASB example having higher expenses in functions such as instruction. (Retrieved 09/26/06 from source, http://nces.ed.gov/ideds/web2000/gasbasb.asp)
When the FAF created the GASB, it stated that the new GASB will establish standards for transactions and activities of local and state entities. They also affirmed that the older FASB would establish standards for all other entities regarding their activities and transactions. (Retrieved 09/26/06 from source, http://www.nysscpa.org/cpajournal/old/07505202.htm)
Let’s say, a public, federally funded library; was set to receive a grant for expansion where they would take bids from private contractors to do all work. They ask for input from library members and locals who often contribute private funds and do fundraising for special projects; many also donate their time. They must account for a need and intent for the grant, then account for how it is really spent, while trying to please all involved. This is a scenario where both standards, especially FASB may apply.