GASB

The Governmental Accounting Standards Board (GASB) is a private, non-governmental organization. Its task is to establish and improve standards of state and local governmental accounting and financial reporting and to educate the public. The mission of the GASB  is to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports, including issuers and auditors.

Accounting and financial reporting standards designed for the government environment are necessary because governments function differently from commercial businesses. Additionally, the information needs of the users of government financial statements are different from the needs of the users of private company financial statements.

According to GASB.org, “GASB issues standards that:

• Result in useful information for users of financial reports (for example, owners of municipalbonds and members of citizen groups)
• Guide and educate the public, including issuers, auditors, and users about the implications
  of those financial reports.The primary users of the information that results from GASB standards are Citizens and citizen groups, state, county, and local legislative and oversight officials as well as, creditors and persons involved in the municipal bond industry.

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