GASB is graded by its constituents.Respondents to a survey submitted to the Financial Accounting Foundation, the organization that funds, oversees and selects members of the Governmetal Accounting Standards Board The role of the Accounting Standards Board (ASB) is to issue accounting standards in the United Kingdom. It is recognised for that purpose under the Companies Act 1985. It took over the task of setting accounting standards from the Accounting Standards Committee (ASC) in 1990. and the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). , generally said the GASB GASB Governmental Accounting Standards Board performs its activities in an "outstanding" manner. However, when asked to rate the standards the GASB has issued in the past five years, only 49% gave a "good" or "excellent" grade. The report was submitted by the FAF's GASB oversight review subcommittee sub·com·mit·tee n. A subordinate committee composed of members appointed from a main committee. subcommittee Noun to examine the degree to which the GASB was achieving its mission. The research included interview and questionnaire findings and reviewers' descriptions, analyses and conclusions about four completed GASB projects and aspects of the GASB's operations. Good marks Respondents said they generally considered GASB's due-process procedures well designed, felt its research was appropriate, believed constituents' views were weighed carefully in standard setting and judged GASB pronouncements and other documents clearly written. They were satisfied with the way the GASB, when making changes, minimized disruption in financial reporting and showed confidence in the dedication and qualifications of its staff. Room for improvement The report said that some respondents were dissatisfied dis·sat·is·fied adj. Feeling or exhibiting a lack of contentment or satisfaction. dis·sat  is·fied with the rate of progress of a project to modernize mod·ern·ize v. mo·dern·ized, mo·dern·iz·ing, mo·dern·iz·es v.tr. To make modern in appearance, style, or character; update. v.intr. To accept or adopt modern ways, ideas, or style. the financial reporting model for government entities (see "GASB's Financial Reporting Model--A Decade in the Making," JofA, Sep.95, page 18). Respondents also were dissatisfied with the passage and subsequent deferral deferral - Waiting for quiet on the Ethernet. of GASB Statement no. 11, Measurement Focus and Basis of Accounting--Governmental Fund Operating Statements operating statement See income statement. . Respondents attributed the disappointing pace of progress on major issues to frequent board-member turnover, the lack of a sense of urgency, GASB members' inability to compromise and the fact that the GASB is not a full-time board. Ways to improve The following are oversight committee recommendations to improve the performance of the GASB, based on the findings and analysis of the performance review. * Trustees should continue to monitor whether a mixed part-time, full-time board can fulfill the GASB's mission. There is widespread agreement within the committee that a full-time board is desirable, but financial constraints prevent this. * The GASB should take advantage of modern telecommunications, such as e-mail, videoconferencing A real time video session between two or more users or between two or more locations. Although the first videoconferencing was done with traditional analog TV and satellites, inhouse room systems became popular in the early 1980s after Compression Labs pioneered digitized video systems and teleconferencing. * More time and resources should be devoted to strategic analysis to anticipate the effect of changes in the reporting environment on government standard-setting needs and GASB priorities. * The GASB should continue to give the reporting model project its highest priority. * A more proactive approach is required to determine the needs of the users of government accounting and financial reporting so developmental and cost-benefit decisions on standards can more confidently reflect those needs. Copies of the report (product code GOS-rev) are available from the Financial Accounting Foundation by calling (203) 847-0700, ext. 555. RELATED ARTICE: GASB's Report Card Users of goverment accounting and financia reporting generally felt 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. was on the right track. How did constituents rate GASB standards issued in the past five years? Good 43% Adequate 30% Somewhat lacking 18% Excellent 6% Poor 3% Source: The GASB Oversight Review Committee |
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