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The Federal Accounting Standards Advisory Board

Explore the role of FASAB, definition of the Federal Entity, sources of GAAP, conversion pros/cons, and how to stay informed.

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The Federal Accounting Standards Advisory Board

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  1. The Federal AccountingStandards Advisory Board What Is the Federal Entity and Shouldn’t We All Use the Same GAAP? AICPA National Governmental Accounting and Auditing Update August 18, 2008

  2. Disclaimer Views expressed are those of the speakers. The Board expresses its views in official publications.

  3. What is FASAB’s role? GASB FASAB FASB

  4. What is FASAB’s role? GAAP FASB GASB FASAB Generally Accepted Accounting Principles

  5. What is the Federal Entity? • Defined in SFFAC 2 • Conclusive criterion • Indicative criteria • Revisiting • Questionable or unique entities • Consistency, completeness, and accountability • Material weakness

  6. What is the Federal Entity? • Objectives of entity project • Clarify boundaries • Provide guidance • Challenges • Difficulty in defining boundaries • Definition of “control” • Differing viewpoints • Legislation

  7. Who’s In and Who’s Out?

  8. Federal Entity Active Project Status • Task Force • Surveys • CFO • OIG • FFRDCs

  9. Source of GAAP Background • AICPA Rule 203 Status • Current practice • Revisiting newsletter guidance • Consistency, completeness, and accountability • Consolidation issues

  10. Examples of Current Practice * GASB or some mixture of the three sources of GAAP.

  11. Pros/Cons of Conversion • Pros • Consistency, completeness, and accountability • Consolidation • Avoid two sets of information • Avoid year-end manual processes

  12. Pros/Cons of Conversion • Cons • Costs to convert • Costs passed on to users • Comparability to sector (e.g., utility) • FS differ from SEC submission • Perceived benefit only at CFR level

  13. Pros/Cons of Conversion • Cons (contd.) • Indirect impact on legislative and judicial branches • Potential for OCBOA or less than unqualified opinions • Loss of comparison to historical reporting • Resistance from agencies

  14. Source of GAAP Active Project Status • Survey • Workgroup • Tentative Decisions • No entities required to convert to FASAB at this time • CFR can include two sources • Intragovernmental eliminations

  15. How can I stay informed? • Visit www.fasab.gov • Sign up for FASAB listserv • Read bi-monthly FASAB newsletter and active project pages • Attend meetings

  16. Questions? Wendy Payne Executive Director 202.512.7350 paynew@fasab.gov www.fasab.gov Melissa Loughan Assistant Director 202.512.5976 loughanm@fasab.gov (Federal Entity) Julia Ranagan Assistant Director 202.512.7377 ranaganj@fasab.gov (Source of GAAP)

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