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Fasb and Gasb

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FASB and GASB Analysis Paper
ACC/460
Carolyn S. Lundy
5/14/2012
Victoria Holmes

The FASB and GASB share something’s in common but they function very differently. Their similarities include both operating as a component of the FAF. The Financial Accounting Foundation (FAF) is the organization that has over sight over the FASB, GASB, FASAC and GASAC. Under each of their standards, they both have to look over all letters, comments and concerns before making any decisions and in some cases can be made available to the public.
Here is where they differ, the FASB has the authority to make and set any new accounting standards to be put in place, which will be recognized by the Securities and Exchange Committee (SEC). The GASB standards are not recognized to be any formal law or ruling, but its standards can be enforced by the individual states that choose the right to. The GASB is solely public and there is unlimited access. In fact, the GASB encourages the public to become heavily involved in their meetings. You can find some records of what will be discussed through the GASB website on the say the meeting will take place. The FASB reports all nongovernment information that will help private entities make the correct accounting decisions.
Under the respective standard process, the FASB houses 7 rules that must be in place, the most important seemingly to be that the Board cares and puts the issues of the stakeholders/shareholders first. As with the GASB, they send those to gather information that can be later studied and hope to be improved.
Modified accrual accounting is used to measure the flow of the financial resources. It shows the combination of cash and full basis accrual. Full accrual accounting is recognized during the accounting period when it happens. With modified accrual combining both cash and full basis, it will show those most recent of transactions during the accounting period. All noncurrent transactions will be noted under GASB-34, government wide statements, where there is a full basis accrual noted.
The FASB and GASB hold some of the same principles, but where they differ is that the government measures success by the public and everyone else measures their success by the money. But in the end we look forward to some accounting standards that we can all benefit from.

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