The GASB
What entity sets accounting and reporting standards for the federal government?
The Government Accounting Standards Board (GASB)
is a private non-governmental organization that creates accounting reporting standards, or generally accepted accounting principles (GAAP), for state and local governments in the United States.
Who is responsible for financial reporting standards?
Responsibility for enforcement and shaping of generally accepted accounting principles (GAAP) falls to two organizations:
The Financial Accounting Standards Board (FASB)
and Securities and Exchange Commission (SEC). The SEC has the authority to both set and enforce accounting standards.
Which entity establishes financial accounting standards and principles for the federal government?
The Financial Accounting Standards Board (FASB)
is an independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations in the United States, following generally accepted accounting principles (GAAP).
Who creates financial reporting?
Established in 1973,
the Financial Accounting Standards Board (FASB)
is the independent, private- sector, not-for-profit organization based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally …
What accounting standards does the federal government use?
Since October 1999, the American Institute of Certified Public Accountants (AICPA) has recognized
the Federal Accounting Standards Advisory Board (FASAB)
as the standard-setting body for federal governmental entities; therefore, the pronouncements resulting from the FASAB process represent generally accepted accounting …
What accounting system does the federal government use?
The Central Accounting Reporting System (CARS)
handles accounting and reporting for all federal agencies. The Central Accounting Reporting System (CARS), is the electronic system of record for the government’s financial data which provides streamlined agency reporting and supports government-wide standardization.
Who prepares the auditor’s report?
The auditor
prepares the report after taking into account the provisions of the Companies Act, the accounting standards and auditing standards. Also, he lays the report before the company in the annual general meeting.
What are the two main financial reporting standard setting bodies?
Examples of standard-setting bodies are the
International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB)
. The IASB is the standard-setting body that is responsible for issuing the international financial reporting standards.
What is the financial reporting process?
Financial reporting is the
process of producing statements that disclose an organization’s financial status to management, investors and the government
.
Which GAAP principle is applicable?
Principle of Regularity
: GAAP-compliant accountants strictly adhere to established rules and regulations. Principle of Consistency: Consistent standards are applied throughout the financial reporting process. Principle of Sincerity: GAAP-compliant accountants are committed to accuracy and impartiality.
Is GASB a government agency?
Established in 1984, the Governmental Accounting Standards Board (GASB) is
the independent, private- sector organization
based in Norwalk, Connecticut, that establishes accounting and financial reporting standards for U.S. state and local governments that follow Generally Accepted Accounting Principles (GAAP).
What is government accounting principles?
Government accounting principles is
the system for tracking government budgets
. Each state has a different set of principles, but there are some general standards that overlap in many of the states.
What is one of the main objectives of financial reporting?
The objective of financial reporting is
to track, analyse and report your business income
. The purpose of these reports is to examine resource usage, cash flow, business performance and the financial health of the business. This helps you and your investors make informed decisions about how to manage the business.
What is difference between GAAP and IFRS?
The primary difference between the two systems is that
GAAP is rules-based and IFRS is principles-based
. … Consequently, the theoretical framework and principles of the IFRS leave more room for interpretation and may often require lengthy disclosures on financial statements.
What are the tools of financial statement?
- Comparative Statement or Comparative Financial and Operating Statements.
- Common Size Statements.
- Trend Ratios or Trend Analysis.
- Average Analysis.
- Statement of Changes in Working Capital.
- Fund Flow Analysis.
- Cash Flow Analysis.
- Ratio Analysis.
