The Government Accounting Standards Board (GASB) is an independent organization that is responsible for creating and issuing accounting standards and requirements for state and local governments in the United States. Established in 1984, GASB’s mission is to promote clear, consistent, transparent, and comparable financial reporting by state and local governments. The GASB sets Generally Accepted Accounting Principles (GAAP), which are similar to the standards set by the Financial Accounting Standards Board (FASB) for businesses or “profit-oriented entities”.

The GASB provides governmental entities with standards and procedures for standardized, uniform financial reporting standards designed to help governmental entities maintain the trust of the public and show their effectiveness. It is essential that the public is able to understand the financial information presented to them in order to support and trust government policies, which is why GASB plays an important role in reporting accounting information to citizens and taxpayers.

GASB achieves its mission through the development, promulgation, and improvement of financial reporting standards for governmental entities, including public pensions and state, local, and other governmental agencies. The GASB also assists with implementation of new standards, coordinates comment letters on new standards, and works with other standard-setting and related organizations in developing consistent, comprehensive standards. This helps to ensure that the financial information disclosed by governments presents a true and fair view of their financial health and operations.

All state and local governments are required to abide by the standards published by the GASB, except in situations where the standards document is not applicable. Non-governmental organizations that receive funding from the government may also find it beneficial to conform to the GASB standards in order to avoid conflicts down the line.

Overall, the Government Accounting Standards Board is a non-partisan, non-government organization that is dedicated to ensuring the quality of financial reporting from state and local governments. GASB does this by setting standards and guidelines for uniform and comprehensive financial reporting, which helps to maintain the trust of citizens and taxpayers. The GASB also provides assistance with implementation and coordination of standards, so that public agencies can better serve their stakeholders.