Accounting Standards in the U.S. Federal Government\" Please respond to the foll

Question

Accounting Standards in the U.S. Federal Government" Please respond to the following:

Go the FASAB Website, located at www.FASAB.gov. Navigate to the “Our Mission” section under the “About” tab, the minutes of recent meetings from the “Board Activities” tab, and the current “Standards” section to prepare to discuss the following topics:

Describe the make-up and selection process of the Board that disseminates federal accounting standards.

Separate accounting standards exist for the U.S. Federal Government in contrast to state and local governments; discuss why this is necessary.

Identify the government agency responsible for compiling the U.S. Federal Government financial reports and the agency responsible for auditing the reports.

Explanation / Answer

The APB Accounting Principle Board led to the creation of the Financial Accounting Standards Board (FASB) in 1973. There are seven full-time members of the FASB which represent various constituencies concerned with accounting standards. Members have included representatives from the accounting profession, profit-oriented companies, accounting educators, and government. Financial Accounting Foundation (FAF) is responsible for selecting the members of the FASB and its Advisory Council.

Separate accounting and financial reporting standards are essential because the needs of users of financial reports of governments have their unique operating environment. For governments, accountability is the government’s responsibility to justify to its citzenry the raising of public resources and to account for the stewardship and use of those public resources The longevity of most governments and their role to maintain and enhance the well-being of citizens through the provision of public services also result in information demands.

The Department of the Treasury, in coordination with the Office of Management and Budget(OMB), prepares the Report, which includes the financial statements for the U.S. Government. The Government Accountability Office (GAO) is required to audit these statements.

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