GASB accounting and reporting standards applicable to public colleges and universities:
A) Are now the same as FASB standards to permit comparability between public and private colleges and universities.
B) Permit public colleges and universities to use the AICPA model which differs substantially from the reporting model used by private colleges and universities subject to FASB jurisdiction.
C) Permit public colleges and universities to optionally follow FASB standards.
D) Differ in some significant ways from FASB standards applicable to private colleges and universities.

Question

Quizplus · Accepted Answer

GASB accounting and reporting standards applicable to public colleges and universities differ in some significant ways from FASB standards applicable to private colleges and universities. This is because GASB focuses on providing financial statements for reporting to constituents interested in assessing accountability and resource allocation. In contrast, FASB's objective is to provide useful financial information to investors and creditors for decision making. Therefore, GASB standards are tailored to meet the specific needs of public colleges and universities, which are typically funded by government sources and must show compliance with legal requirements for the use of public funds.

GASB Accounting and Reporting Standards Applicable to Public Colleges and Universities