Question

Is the FASB responsible for governmental accounting?

Answer 1

FASB -- Financial Accounting Standards Board (FASB) is the independent, private-sector, not for profit organization.

FASB establishes financial accounting and reporting standards for public and private companies and not for profit organization that follow General Accepted Accounting Principles.

The primary organization that is responsible for creating and updating the standards is the GASB (Governmental Accounting Standards Board).

The GASB is tasked with the development of accounting and financial reporting standards or state and local governments, while the FASB has the same responsiblity but for all other entities not related to governmental activities.

Hence, it is clear the FASB is not responsible for governmental accounting.