The document discusses the Governmental Accounting Standards Board (GASB) and its role in establishing accounting standards for state and local governments in the U.S. It highlights key GASB statements, such as Statement No. 34 on financial statements, Statement No. 68 on pensions, Statement No. 45 on other postemployment benefits, Statement No. 54 on fund balance reporting, and Statement No. 62 on codification guidance. Additionally, it compares GASB with the Federal Accounting Standards Advisory Board (FASAB) and outlines the objectives and significance of each GASB statement.

2. GASB STATEMENTS
The GASB issues Governmental Accounting Standards Board
Statements (GASB Statements) to get GAAP for state and
local governments in the United States of America. These
statements are most authentic source for governmental
GAAP
Important statements are:-
• Statement no. 34
• Statement no. 68
• Statement no. 45
• Statement no. 54
• Statement no. 62

3. FEDERAL ACCOUNTING STANDARDS ADVISORY
BOARD (FASAB)
• The Federal Accounting Standards Advisory Board (FASAB) is a federal
advisory committee in a United States whose basic objective is to
develop accounting standards for the U.S. government agencies
• The main aim of the FASAB is to improve government accountability by
issuing federal financial accounting and reporting standards
• The FASAB committee consists of total nine members. Out of which three
are federal representatives and six are public non-federal members.

4. COMPARISON
G A S B
1. The governmental accounting
standard board is responsible to set
the accounting standards and
principles for the state and local
governments of the U.S.
2. The scope of the GASB is the
government
3. It provides accurate and reliable
information to the public in
general.
FA S B
1. The financial accounting standards
board aims to improve the existing
corporate practices followed by the
non-governmental organization
and companies by establishing
standards and guidelines in the U.S.
2. The scope of the FASB includes
public companies in the United
States.
3. It provides reliable and accurate
information to the shareholders or
investors of the public companies.

5. STATEMENT 34 – BASIC FINANCIAL STATEMENTS AND
MANAGEMENT’S DISCUSSION AND ANALYSIS FOR
STATE AND LOCAL GOVERNMENTS
New information has been
created and rebuild the past
information presented by
the government
Designed to help inform the
general public as to how well
the government maintains
infrastructure assets using
preventive maintenance verses
replacement
Acknowledge the
importance of information
that governments already
include in their annual
reports
In order to make annual
reports more comprehensive
and easier to understand,
new requirements has been
developed
OBJECTIVES OF
STATEMENT NO.
34

6. NEED OF STATEMENT NO. 45
• Budgetary comparison schedules should be presented as RSI along with
the other significant data required by the GASB pronouncements.
Government needs RSI to use the modified approach for reporting the
infrastructure assets
• MD&A helps in the introduction of the basic financial statements and
provides proper analysis of the overall financial activities of the
government. it is mandatory for the government to present MD&A
before the basic financial statements
• Fund financial statements consists of the series of various statements
that emphasis on the information about the government's major
governmental and enterprise funds

7. STATEMENT NO. 68 – ACCOUNTING AND
FINANCIAL REPORTING FOR PENSIONS
• The statement no. 68, Accounting and Financial Reporting for Pensions
revises and establishes new financial reporting requirements for local
and state governments that provide their employees with pension
benefits.
• The statement no. 27, Accounting for Pensions by State and Local
Governmental Employers and statement no. 50, Pension and Disclosures
are being replaced by the statement no. 68

8. NEED OF THE STATEMENT
More vigorous disclosures of
assumptions will help in better
assessments of reasonable of
pension measurement
To improve transparency,
explanations of how and why
the net pension liability
changed from year to year
should be answered
Only one choice should be given
to attribute the actuarial present
value of projected benefit
payments rather than allowing
them to choose between the six
methods with additional variations

9. STATEMENT NO. 45 – ACCOUNTING AND FINANCIAL
REPORTING BY EMPLOYERS FOR POSTEMPLOYMENT
BENEFITS OTHER THAN PENSION
• It states that local and state governmental employers should provide
other postemployment benefits (OPEB) as a part of the total
compensation offered to attract and retain the services of qualified
employees.
• The basic prospective of the implementation of the OPEB is that
employers in the beginning of the initial year set the beginning net OPEB
obligation at zero.
• This statement encourages the public sector employees to set aside the
funds for the non-pension benefits.

10. NEED OF THE STATEMENT
When the related services are
received by the employer, the
cost of benefits should be
recognizable
This statement helps in
assessing useful potential
demands on the employer's
future cash flow
Helps in providing systematic,
accrual-basis measurement
and recognition of OPEB cost
over a period that
approximates employees years
of service

11. STATEMENT NO. 54 – FUND BALANCE
REPORTING AND GOVERNMENTAL FUND TYPE
DEFINITIONS
• It states the importance to enhance the effectiveness of fund balance
information by providing a clearer fund balance classifications in order
to bring the consistency in their application and clarifying the existing
governmental fund type definitions.
• This statement is effective for periods that begin after June 15, 2010.
Implementation of this statement of GASB is required for the first fiscal
year ending June 30, 2011.

12. NEED OF THE STATEMENT
• This statement will help the government in classifying the
amounts consistently regardless of the fact that to which
category it belongs.
• By providing fund balance categories and classifications,
financial statement will be understood by its users more easily
• Because of the clarifications in the definitions of governmental
fund, the uncertainty in the mind of the users has been
decreased or should be reported in the respected fund types

13. STATEMENT NO. 62 - CODIFICATION OF ACCOUNTING AND
FINANCIAL REPORTING GUIDANCE CONTAINED IN PRE-
NOVEMBER 30, 1989 FASB AND AICPA PRONOUNCEMENTS
The statement no. 62 of GASB has an objective to integrate into the GASB’s
authoritative literature certain accounting and financial reporting
guidance that is included in the following pronouncements issued on or
before November 30, 1989 which does not conflict with or contradict
GASB pronouncements:
• Financial Accounting Standards Board (FASB) Statements and
Interpretations
• Accounting Principles Board Opinions
• Accounting Research bulletins of the American Institute of Certified
Public Accountants (AICPA) Committee on Accounting Procedure

14. NEED OF THE STATEMENT
The codification of all the sources of generally accepted
accounting principles for state and local government in
order to derive from single sources, improved financial
reporting by contributing to the GASB's efforts
The usage of this statement will lead to elimination
of the financial statement preparers and auditors in
order to determine which FASB and AICPA
pronouncement provision will apply to state and
local governments. As a result of this, financial
statements are prove to be more consistent

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