Conceptual Framework - Accounting Standard Setting Body

Question 1

GASB is to establish accounting and reporting standards for activities and transactions of state and local gov’t entities including:

Answer 1

State, counties, cities, and towns
Independent School Districts
State and local gov’t education institutions (college and universities);
hospitals and other care organizations;
Charitable and other not for profit organizations that are gov’t organizations.

Question 2

What is GAAP’s basis compared to IFRS?

Answer 2

GAAP is ruled based

IFRS is principle based.

Question 3

GASB has now codified all of its standards in the

Answer 3

Codification of Governmental Accounting and Financial Reporting Standards.

Question 4

FASB has established the following procedure for developing accounting standards.

Answer 4

1. The Board identifies a financial reporting issues
2. The FASB Chairman decides whether to add a project to the technical agenda, The Board votes on whether to add the project to its agenda. A simple majority vote is needed.
3. The Board deliberates at one or more public meetings
4. The Board issues the Exposure Draft.
5. The Board holds a public roundtable meeting
6. The staff analyzes comment letters, public roundtable discussion,
7. The Board issues an Accounting Standards Update by simple majority vote, describing amendments to the Accounting Standards Codification.