Government Accounting Standards Board (GASB)

The Government Accounting Standards Board (GASB) is a private, nonprofit organization that establishes and improves financial accounting and reporting standards for state and local governments in the United States. The GASB's mission is to "establish and improve standards of financial accounting and reporting for state and local governments." The GASB's standards are used by over 10,000 state and local governments in the United States.

The GASB was created in 1984 by the Financial Accounting Foundation (FAF). The FAF is a private, nonprofit organization that oversees the GASB and other standard-setting organizations. The FAF is funded by contributions from state and local governments, accounting firms, and other organizations.

The GASB's standards are developed by a board of trustees that is composed of 14 members. The trustees are appointed by the FAF and represent a variety of interests, including state and local governments, accounting firms, and academia.

The GASB's standards are issued in the form of Statements of Governmental Accounting Standards (GASB Statements). GASB Statements are authoritative and must be followed by state and local governments that receive federal financial assistance.

The GASB also issues Technical Bulletins and Implementation Guides to provide guidance on the application of its standards. Technical Bulletins are not authoritative, but they are considered to be persuasive. Implementation Guides are not authoritative, but they are considered to be helpful.

The GASB's standards are important because they provide guidance on how state and local governments should account for their financial transactions. The GASB's standards help to ensure that state and local governments provide accurate and transparent financial information to their constituents.

The GASB's standards are also important because they help to promote comparability among state and local governments. By using the same accounting standards, state and local governments can make it easier for investors, creditors, and other interested parties to compare their financial information.

The GASB is a valuable resource for state and local governments. The GASB's standards provide guidance on how to account for financial transactions, and they help to promote comparability among state and local governments. The GASB's standards are important for ensuring that state and local governments provide accurate and transparent financial information to their constituents.