Not-for-Profit vs. Governmental Accounting
You recently landed your dream job working for the state as an accountant. You are given the task to research several state and local governmental financial accounting issues.
For each of the following issues, rank the guidance based on the governmental GAAP hierarchy.
Issue 1:
Governmental accounting textbook
GASB Technical Bulletin
FASB statement
GASB interpretation
Issue 2:
AICPA Practice Bulletins (applying specifically to state and local government)
AICPA Industry Audit and Accounting Guides
AICPA issue papers
Widely recognized industry practice
Issue 3:
International Accounting Standards Committee Statements
AIPCA Statements of Position (applying specifically to state and local government)
GASB Q&As
GASB Statement
Issue 4:
Article in a leading audit journal
FASB Statement
Leading accounting textbook
Position statement from GASB Emerging Issues Taskforce
Issue 5:
GASB Technical Bulletin
FASB Technical Bulletin
Speech from a leading accounting professor
GASB concept statement
Not-For-Profit vs. Governmental Accounting
Name
Course
Institution
Date
For each of the following issues, rank the guidance based on the governmental GAAP hierarchy.
Speech from a leading accounting professor-` governmental GAAP hierarchy
Issue 1:
* Governmental accounting textbook- non- authoritative 4
* GASB Technical Bulletin-2
* FASB statement-3
* GASB interpretation-`1
Under GAAP hierarchy, the two categories of authoritative guidance are category A and B, where the former includes GASB statements and formerly issued interpretations. Category B includes GASB Technical Bulletins, GASB Implementation Guides (Q & As), and the AICPA literature cleared by the GASB. The other category is non-authoritative.
Issue 2:
* AICPA Practice Bulletins (applying specifically to state and local government) -`3
* AICPA Industry Audit and Accounting Guides-1
* AICPA issue papers-`2
* Widely recognized industry practice-`4
AICPA Practice Bulletins are in level 3 like the GASB...