Which entity is responsible for issuing federal accounting standards that guide federal financial reporting?

Which entity is responsible for issuing federal accounting standards that guide federal financial reporting?

• A. Federal Accounting Standards Advisory Board
• B. Financial Accounting Standards Board
• C. Governmental Accounting Standards Board
• D. Securities and Exchange Commission

Answer: (A)

Federal accounting standards for the U.S. government’s financial reporting are issued by the Federal Accounting Standards Advisory Board (FASAB). FASAB develops the Federal Financial Accounting Standards (SFFAS) that guide how the government prepares and presents its financial statements. This is different from the private sector, where the Financial Accounting Standards Board (FASB) sets GAAP, and from state and local governments, where the Governmental Accounting Standards Board (GASB) sets standards. The Securities and Exchange Commission (SEC) acts as a regulator and does not set federal accounting standards.

Federal accounting standards for the U.S. government’s financial reporting are issued by the Federal Accounting Standards Advisory Board (FASAB). FASAB develops the Federal Financial Accounting Standards (SFFAS) that guide how the government prepares and presents its financial statements. This is different from the private sector, where the Financial Accounting Standards Board (FASB) sets GAAP, and from state and local governments, where the Governmental Accounting Standards Board (GASB) sets standards. The Securities and Exchange Commission (SEC) acts as a regulator and does not set federal accounting standards.