The Financial Accounting Foundation
(FAF) has released a study on the purposes of financial accounting and reporting of state and local governments. The independent study was commissioned by the FAF, with the goal of providing insight to the Board of Trustees on how the Governmental Accounting Standards Board
(GASB), may best serve stakeholders in the pursuit of its mission.
The study was conducted by three independent researchers from different universities who worked as a team to determine stakeholders’ understanding and expectations of the role of financial accounting and reporting standards. They also looked at how users use financial accounting and reporting standards to determine the “accountability” of reporting governments.
The FAF Trustees will utilize the study’s findings to refine GASB’s authority to set standards for state and local government financial accounting and reporting. The Trustee’s evaluation process will include stakeholder engagement opportunities.