Allen calls for a restructured GASB.Tom L. Allen, chairman of the Governmental Accounting Standards Board The Governmental Accounting Standards Board (GASB) is currently the source of generally accepted accounting principles (GAAP) used by State and Local governments in the United States of America. , said he has recommended a change in the composition and size of the GASB GASB Governmental Accounting Standards Board . Allen told attendees at the American Institute of CPAs Annual Accounting and Auditing Update Conference in Washington, D.C., that he would like to see one more member added to the board and a requirement for a two-thirds majority to approve a project or standard. Allen said the current vote for approval--a simple three-to-two majority-was not significant enough a majority. "There have been instances when a GASB vote of three to two was reversed with one change of heart," said Allen. "GASB has received criticism about its voting process because governments do not want to have to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. the costs of complying with a new standard if the closest the board can come to agreement is three to tWO." The five-member GASB board is composed of two local government preparers, one state auditor State auditors are executive officers of U.S. states. The office usually is created by the state constitution.
2. There are two comptrollers. It is the duty of the first to examine all accounts settled by the first and fifth auditors, and certify the balances arising and Treasurers, thus giving the GASB another state government representative. "We have two financial report preparers on the board, but they both are representatives of local government," said Allen. Allen said some concern had been raised over the potential blocking vote preparers would have if the board added a third preparer to a six-member board. "This is an issue we have got to get over;' said Allen. "It is more important to achieve a balance between state and local government." The trustees of the Financial Accounting Foundation, which is responsible for selecting the members of the GASB and its advisory council, will consider the changes to GASB at its October meeting. The Current Structure of GASB 1. State government Tom L. Allen, GASB chairman and former state auditor of Utah. 2. Local Government Barbara A. Henderson, Retired director of finance and city treasurer of Fullerton, California Fullerton is a city located in northern Orange County, California, United States. As of the 2000 census, the city had a total population of 126,003. It was founded in 1887 by George and Edward Amerige and named for George H. . 3. Local government Paul R. Reilly. Retired finance director and comptroller of Madison, Wisconsin Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. It is also home to the University of Wisconsin–Madison. The 2006 population estimate of Madison was 223,389, making it the second largest city in Wisconsin, after Milwaukee, and . 4. Accounting profession Edward M. Klasny. Retired partner of Ernst & Whinney (now Ernst & Young). 5. Academia Robert J. Freeman Freeman can mean:
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