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Finance & Accounting
Pages 4 (1004 words)
Discussion W1-3 Name Course Instructor Date Discussion W1-3 GABS is the accounting board that sets the standards for governmental accounting standards in the U.S. Its mission is to improve the standards of financial reporting in both the federal and local levels of the government by ensuring two things.
This include: independence, integrity, objectivity and being transparent. The body hopes that its independence from undue pressure will not have an influence in its decision-making processes. The board has to be ethical, honest and forthright in all its relationships. It also has to be impartial in its decisions so that it can encourage open public participation. FASB on the other hand, is responsible for improving the financial accounting and reporting by non-governmental agencies. The boards has to ensure that such institutions provide financial information that is accurate and useful to investors and other end users. The board encourages broad participation of all stakeholders view in an effort to come up with better financial reporting standards. There are some differences in accounting for profits and nonprofit financial reporting. The standards of reporting for the two accounting boards are very different especially when it comes to accounting for profit. In recognition of profits for instance, GABS does not necessarily recognize profits because it is a non-profit making venture and instead it may be called surplus. FASB on the other hand, does recognize profits in its financial reporting and is one of the most important information for decision makers. Therefore, profit is always recognized and has to be reported in the financial statements of profit making institutions. ...
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