Which body has been established to recommend accounting and financial reporting standards for the federal government?

Which body has been established to recommend accounting and financial reporting standards for the federal government?

• A. Federal Accounting Standards Advisory Board (FASAB)
• B. Governmental Accounting Standards Board (GASB)
• C. Financial Accounting Standards Board (FASB)
• D. American Institute of Certified Public Accountants (AICPA)

Answer: (A)

The Federal Accounting Standards Advisory Board is the body established to recommend accounting and financial reporting standards for the federal government. It was created specifically to develop and issue federal accounting standards (SFFAS) to guide how federal agencies record and report their financial activities. This focus on the federal sector sets it apart from GASB, which covers state and local governments, FASB, which serves the private sector, and AICPA, a professional organization rather than a government standard-setter. The result is greater accountability and transparency in how the government accounts for its resources and obligations.

The Federal Accounting Standards Advisory Board is the body established to recommend accounting and financial reporting standards for the federal government. It was created specifically to develop and issue federal accounting standards (SFFAS) to guide how federal agencies record and report their financial activities. This focus on the federal sector sets it apart from GASB, which covers state and local governments, FASB, which serves the private sector, and AICPA, a professional organization rather than a government standard-setter. The result is greater accountability and transparency in how the government accounts for its resources and obligations.