GASB Scope of Authority

Proposed Changes

What is the GASB Scope project?

The Financial Accounting Foundation (FAF) Board of Trustees issued for comment a revised proposal to clarify the characteristics of information that the Governmental Accounting Standards Board (GASB) may incorporate into the financial accounting and reporting concepts, standards, and guidance that it issues for state and local governments.

The proposal, GASB Scope of Authority: Consultation Process—Revised Proposal, outlines a revised process through which the GASB would consult with the FAF Trustees´ Standard-Setting Process Oversight Committee to determine whether certain information that the GASB might consider for standard-setting activity is "financial accounting and reporting information" within the scope of the Board´s standard-setting mission.

The proposal is the result of stakeholder feedback on the February 2013 Request for Comment; discussions between the Trustees, GASB and FASB leaders; and completion of an independent academic study (referenced below) that documented GASB stakeholders´ views on the scope of the GASB´s standard-setting activities and authority.

The proposal is available at the FAF website. Stakeholders can email comments to GASBscope@f-a-f.org or mail them to the following address by September 30, 2013: GASB Scope, Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856

Revised Proposal Request for Comment Press Release (August 2013)
Revised Proposal Request for Comment (August 2013)
Original Proposal Request for Comment Press Release (February 2013)
Original Proposal Request for Comment (February 2013)

The independent academic study

The FAF last August made public an independent academic study exploring the purposes of financial accounting and reporting of state and local governments. The study was commissioned in May 2011 by the FAF to 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 FAF, as part of its oversight of the GASB, commissioned the study to provide insights to the Board of Trustees on how the GASB can best serve stakeholders within the context of its mission.

Three independent researchers from three universities, working as a team, conducted the study. The research was intended to provide greater understanding of the needs and expectations of governmental financial report stakeholders – preparers, auditors, and users.

The study also sought to examine stakeholders´ understanding and expectations of the role of financial accounting and reporting standards in enabling users of financial reports to assess the "accountability" of reporting governments.

How can I submit a comment letter?

Stakeholders can email comments to GASBscope@f-a-f.org or mail them to the following address by September 30, 2013: GASB Scope, Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856

Where can I review the comment letters?

To view the comment letters submitted on the revised proposal on GASB Scope of Authority: Consultation Process—Revised Proposal, you may reach them here.

To view the comment letters submitted on the original proposal on GASB´s Scope of Authority: Proposed Changes to Agenda-Setting Process, you may reach them here.