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Three Officials Responsible For Federal Financial Reporting Established The Federal Accounting Standards Advisory Board (FASAB Or "The Board") As A Federal Advisory Committee

Three officials responsible for federal financial reporting established the Federal Accounting Standards Advisory Board (FASAB or "the Board") as a federal advisory committee. The officials were the Secretary of the Treasury, the Director of the Office of Management and Budget, and the Comptroller General of the United States.

They created FASAB to develop accounting standards and principles for the United States Government. They are referred to as the Board’s sponsors because they possess legal authority under various laws to establish accounting and financial reporting standards for the Government. The three agencies they head fund the FASAB along with the Congressional Budget Office. In October 1999 the American Institute of Certified Public Accountants (AICPA) recognized FASAB as the board that promulgates generally accepted accounting principles (GAAP) for federal entities. To meet its unique mission, FASAB considers the information needs of the public, Congress, managers, and other users of federal financial information. The Board considers comments from the public on its proposed Statements, which are widely distributed as "exposure drafts." The Board publishes Statements of Federal Financial Accounting Concepts (SFFAC) and Statements of Federal Financial Accounting Standards (SFFAS).


FASAB also publishes Interpretations, Technical Bulletins, and staff guidance. After the Board concludes its deliberations on a proposed
Statement and submits it to the sponsors, they have 90 days to review the Statement. If neither the Director of the Office of Management and Budget nor the Comptroller General object, the Statement is published by FASAB and becomes generally accepted accounting principles for  federal financial reporting entities.

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