Oll, guidance for similar transactions lL, TUnOWed by nonauthoritative sources.

Question

Oll, guidance for similar transactions lL, TUnOWed by nonauthoritative sources. Considering the GAAP hierar- SlIOuId chy, respond to the following Now YOU Try. Now YOU Try 10.4 1. In your own words, describe the order in which sources should be considered in applying the state and local government GAAP hierarchy. 2. Now, compare this state and local GAAP hierarchy with the FASB's guidance for using authoritative versus nonauthoritative sources. Finally, in a sense, the GASB gives one nonauthoritative source priority over other sources Name this source, and explain why you believe it is given priority 3.

Explanation / Answer

1. First, GASB Statement and Interpretation, then GASB Technical Bulleting, Implementation Guides, and AICPA literature, then GASB Concept Statement, then guidance from other standard setters like FASB, FASAB, other international public and private sector standard setters and last the practices which are prevalent in state and local government.

2. GASB classifies itself as the authoritative source for state and local government entities, however as per the FASB' Gudiance, FASB is the single source of authoritative U.S. accounting and reporting standards, except for rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws, which are sources of authoritative GAAP for SEC registrants. All other are nonauthoritative sources.

3. The nonauthoritative sources which is given priority is FASB and this is because FASB set standards are the universally accepted standards for all entities in USA.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.