Accounting Standards Essay - 1364 Words

The Federal Government, State and Local Governments (SLG), and Not-for-profit organizations (NFP) all have unique objectives and assets under their control. As a result it may not be feasible to develop a single set of accounting standards that accurately represents all of their financial activity in a manner that is useful to concerned parties. To resolve these discrepancies three separate standard setting bodies have been tasked with developing Generally Accepted Accounting Principles (GAAP) for these different organizations: The Federal Accounting Standards Advisory Board (FASAB) for federal accounting, the Governmental Accounting Standards Board (GASB) for SLG, and the Financial Accounting Standards Board (FASB) for NFPs. The different†¦show more content†¦FASB applied to businesses has always served to provide a useful metric for the business to achieve its intended objective, maximization of profits. Performance and Accountability Reports, when properly applied, can pr ovide this same service to federal organizations. At the same time, the federal governments actual implementation of performance standards and report consolidation standards may be one of its weaknesses. A potential difficulty with consolidation of the financial reports and performance metrics of several unique and distinct federal agencies may be an oversimplification of the big picture. This oversimplification can lead to a competition that shifts emphasis from big picture concerns to more trivial matters. This phenomenon can be viewed in the implementation of the Executive Branch Management Scorecard which compares specific areas of different federal organizations and assigns colors to them based on their ability to meet given performance standards. This has resulted in organizations applying their efforts to reach the lowest hanging fruit instead of focusing on their most pressing issues. It is crucial that the federal government maintain their focus on addressing major issues for FASAB to provide its intended purpose. State and Local Government Accounting In my opinion, the most significant strength of the Comprehensive AnnualShow MoreRelatedAccounting Standard Of Australian Accounting Standards1140 Words   |  5 Pagesin there financial statements of their company. Australia Accounting Standard Board publish some new accounting standard related to the RDR implementing to review the differential reporting framework. These standards made on 30 June 2010 and implement on or after 1 July 2013. These new standards are:- †¢ AASB 1053 Application of Tiers of Australian Accounting Standards (PDF); and †¢ AASB 2010-2 Amendment to Australian Accounting Standards arising from Reduced Disclosure Requirements. DifferentialRead MoreThe Standards Of Accounting Standards830 Words   |  4 PagesAccounting standard set has become debatable topics in regards its function in real business. 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