GASB Scope of Authority

GASB's Scope of Authority: Proposed Changes to Agenda-Setting Process

What is the GASB Scope project?

The Financial Accounting Foundation (FAF) Board of Trustees has issued for public comment a proposal to revise the agenda-setting process for the Governmental Accounting Standards Board (GASB) to assist the Trustees in assessing the scope of the GASB’s standard-setting activity.

The proposal is the result of discussions between the Trustees and GASB leaders following completion of an independent academic study (referenced below) that documented GASB stakeholders’ views on the scope of the GASB’s standard-setting activities and authority.

The study revealed a lack of consensus about the appropriate scope of the GASB’s activities and involvement in government accountability reporting.

Stakeholders can email comments to GASBscope@f-a-f.org or mail them to the following address by April 30, 2013: GASB Agenda Process, Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856.

The independent academic study

The FAF last August made public an independent academic study exploring the purposes of financial accounting and reporting of state and local governments. The study was commissioned in May 2011 by the FAF to examine the role of financial reporting standards and guidelines issued by the GASB in enabling users of governmental financial reports to assess the accountability of governments.

The FAF, as part of its oversight of the 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.

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.

How can I submit a comment letter?

Stakeholders can email comments to GASBscope@f-a-f.org or mail them to the following address by April 30, 2013:

GASB Agenda Process, Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856

Where can I review the comment letters?

To view the comment letters submitted on the Request for Comment on GASB’s Scope of Authority: Proposed Changes to Agenda-Setting Process, you may reach them here.