Please compare and contrast the FASB and the GASB. Provide references .© BrainMass Inc. brainmass.com March 4, 2021, 11:10 pm ad1c9bdddf
The FASB was created in 1973 as the regulatory body in private sector accounting to establish "standards of financial accounting that govern the preparation of financial reports by nongovernmental entities." (2011, FASB). Standards set by the FASB are enforced by the SEC. The FASB also is the main regulatory body that both establishes and amends GAAP. The core mission of the FASB is to establish and continually improve financial accounting standards that, when followed and enforced, provide users of the company's financial statements with reliable, accurate information, also based on principles of full disclosure. Users of the financial statements can then make appropriate lending, investing, or analysis purposes based on the accuracy of the financial statements.
The GASB was created in 1984 as the regulatory body in government sector accounting to establish government accounting practices specifically designed to accommodate for the direct needs of governmental accounting. The FASB and GASB operate similarly in respect to their entities. The FASB requires that all necessary disclosures are made centered towards typical users of the public company's financial statements. The GASB requires ...
The solution compares and contrasts the FASB and the GASB.