NEWS RELEASE 08/06/12
Financial Accounting Foundation Makes Public an Independent Study of the Purposes of State and Local Government Financial Accounting and ReportingNorwalk, CT, August 6, 2012—The Financial Accounting Foundation (FAF) today makes public an independent academic study exploring the purposes of financial accounting and reporting of state and local governments. The FAF, as part of its oversight of the Governmental Accounting Standards Board (GASB), commissioned the study to provide insights to the Board of Trustees on how the GASB can best serve stakeholders within the context of its mission. The final report is now available at the FAF website.
Three independent researchers from three universities, working as a team, conducted the study. The research was intended to provide greater understanding of the needs and expectations of governmental financial report stakeholders – preparers, auditors, and users. The study also sought to examine stakeholders’ understanding and expectations of the role of financial accounting and reporting standards in enabling users of financial reports to assess the “accountability” of reporting governments.
Over the next several months, the FAF Trustees will review the study’s findings and explore the potential of better defining the nature of GASB’s authority in setting standards of financial accounting and reporting for state and local governments. The Trustees will also consider whether process or procedural enhancements will help clarify GASB’s scope of authority and better enable the GASB to serve stakeholders within the context of its mission.
The Trustees’ evaluation will include pursuing further opportunities to engage with stakeholders on these matters.
About the Financial Accounting Foundation
The FAF is responsible for the oversight, administration, and finances of both the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB). The Foundation is also responsible for selecting the members of both Boards and their respective Advisory Councils.
About the Governmental Accounting Standards Board
The GASB is the independent, not-for-profit organization formed in 1984 that establishes and improves financial accounting and reporting standards for state and local governments. Its seven members are drawn from the Board’s diverse constituency, including preparers and auditors of government financial statements, users of those statements, and members of the academic community. More information about the GASB can be found at its website, www.gasb.org.