Question

Are there significant differences in the FASB rules versus the GASB rules for non-governmental NPOs?

Answer 1

The GASB is one of two boards that establishes GAAP. The other is the Financial Accounting Standards Board (FASB). While the GASB has jurisdiction over financial reporting by governmental entities, the FASB establishes rules for private sector accounting. Both boards are independent, nongovernmental bodies whose members are appointed by the trustees of the Financial Accounting Foundation (FAF). The FAF is an independent, nongovernmental body that is responsible for the basic structure for establishing accounting principles. With respect to the GASB, the FAF appoints GASB members, raises funds, and provides general oversight of governmental accounting standards setting. Both the FAF and GASB are assisted by the Government Accounting Standards Advisory Council (GASAC).