Difference between GASB and FASB
Basis |
GASB |
FASB |
---|---|---|
Scope of Authority |
Sets standards for state and local governments and related entities in the United States. |
Sets standards for private sector businesses and nonprofit organizations in the United States. |
Focus of Standards |
Focuses on accounting and financial reporting needs specific to governmental entities. |
Focuses on accounting and financial reporting needs of businesses and nonprofit organizations. |
Nature of Entities Covered |
Covers government entities, including federal, state, and local governments, school districts, and public utilities. |
Covers private sector businesses, nonprofit organizations, and other entities outside of the governmental sector. |
Purpose of Financial Reporting |
Emphasizes accountability and transparency in the use of public funds and resources. |
Emphasizes financial performance, profitability, and stakeholder interests of private sector entities. |
Regulatory Environment |
Operates within the framework of governmental regulations applicable to public sector entities. |
Operates within the framework of financial regulations and standards applicable to private sector entities. |
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