NEWS RELEASE 05/18/11

Financial Accounting Foundation Commissions Study Examining Role of GASB Standards in Assessing Accountability of Reporting Governments

Norwalk, CT, May 18, 2011—The Financial Accounting Foundation (FAF) announced today that, as part of its oversight of the Governmental Accounting Standards Board (GASB), it has commissioned an independent and comprehensive academic study on the purposes of financial accounting and reporting of state and local governments. The study will 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 GASB is the independent board of the FAF responsible for establishing standards of financial accounting and reporting for state and local governmental entities in the United States. The research study will explore the purposes of financial reporting by state and local government entities, the needs and requirements of users of financial reports for these government entities, and insights regarding the value of information about the accountability of governments.

The study will be led by a research team that is greatly experienced in governmental accounting matters, including:

Kenneth A. Smith PhD, who will lead the research effort
(Senior Lecturer – Daniel J. Evans School at the University of Washington)
Donald R. Deis, PhD (Ennis & Virginia Joslin Endowed Chair & Professor of Accounting—Texas A&M University-Corpus Christi) and
Marc A. Rubin, PhD (PricewaterhouseCoopers Professor of Accountancy and Chair of the Department of Accountancy—Miami University in Oxford, Ohio).

The team will conduct and prepare an independent and objective study that will engage a broad spectrum of the FAF and GASB’s constituents.

When completed, the data collected in the study will serve as an important tool to aid the FAF’s Board of Trustees in its ongoing oversight of the GASB and how the GASB can best serve constituents within the context of its mission. The FAF expects the study to be completed before the end of the year.

About the Financial Accounting Foundation

The FAF is responsible for the oversight, administration, and finances of both the Financial Accounting Standards Board (FASB) and its counterpart for state and local government, the Governmental Accounting Standards Board (GASB). The Foundation also is responsible for selecting the members of both Boards and their respective Advisory Councils.