GASB exposure draft on colleges and universities.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. issued an exposure draft that provides guidance on accounting and reporting models used by public colleges and universities. The draft also proposes guidance for financial statements that include public colleges and universities as component units of a state or local government. According to the ED, public institutions of higher education should follow either of two models: * The American Institute of CPAs College Guide model-the accounting and financial reporting guidance recognized by the 1973 AICPA AICPA See American Institute of Certified Public Accountants (AICPA). industry audit guide, Audits of Colleges and Universities (as amended by AICPA Statement of Position no. 74-8, Financial Accounting and Reporting by Colleges and Universities) and by applicable Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). and GASB GASB Governmental Accounting Standards Board pronouncements. * The Governmental model-established by the National Council on Governmental Accounting (NCGA (National Computer Graphics Association) A Fairfax, Virginia-based organization dedicated to developing and promoting the computer graphics industry. It maintained a clearinghouse for industry information. NCGA closed its doors in 1996. ) Statement no. 1, Governmental Accounting and Financial Reporting Principles, as modified by subsequent NCGA and GASB pronouncements. GASB Chairman James F. Antonio said the proposal "would clarify generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting in this area and establish GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). for governmental colleges and universities at the highest level of guidance in the GAAP hierarchy now proposed by the American Institute of CPAS." He added it would also provide a starting point that could ultimately lead to one or more pronouncements establishing one comprehensive accounting and financial reporting model for public colleges and universities. If adopted as a final statement, the proposal would become effective for periods beginning after June 15, 1992. If comparative financial statements are presented, restatement of prior-year financial data would be required. Comments on Governmental College and University Accounting and Financial Reporting Models are requested by July 31, 1991. One copy of the proposal is available without charge until July 31 from the GASB Order Department, 401 Merritt 7, P. 0. Box 5116, Norwalk, Connecticut 06856-5116. |
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