Which Accounting Standards Board is associated with government sector standards?

Which Accounting Standards Board is associated with government sector standards?

• A. GASB
• B. FASB
• C. IFRS
• D. IASB

Answer: (B)

Government sector standards are established by the Governmental Accounting Standards Board, which sets GAAP specifically for state and local governments in the United States. GASB develops accounting and financial reporting standards tailored to government operations, including fund accounting, budgetary considerations, and the presentation of both government-wide and fund financial statements. In contrast, FASB sets GAAP for private sector companies and nonprofit organizations outside government, while IFRS and IASB establish international standards used in many other countries. So for government accounting, GASB is the appropriate standard-setter.

Government sector standards are established by the Governmental Accounting Standards Board, which sets GAAP specifically for state and local governments in the United States. GASB develops accounting and financial reporting standards tailored to government operations, including fund accounting, budgetary considerations, and the presentation of both government-wide and fund financial statements. In contrast, FASB sets GAAP for private sector companies and nonprofit organizations outside government, while IFRS and IASB establish international standards used in many other countries. So for government accounting, GASB is the appropriate standard-setter.