Cagliari: Seminar 3

Seminar 3: May 28, 2008
American Government Accounting
Institutions, Concepts and Standards


Issues to Address:

  • ** Who are the stakeholders of FASAB and GASB, which set Generally Accepted Accounting Principles (GAAP) for governments in the United States? What do the stakeholders contribute? What do they expect in return?
  • *** What are the ten aspects of financial accounting for which choices have to be made from among the alternatives?
  • ** What are the alternatives for each of the ten aspects of financial accounting?
  • * What are the costs and benefits associated with accounting choices? To whom? How to measure them?

Professor Chan’s lecture based on:

  1. ** American Government Accounting Standards, Chapter 4 “Standard-setting Institutions, Due Process and Outputs” – focus only on the section “A Stakeholder Theory of Government Accounting Standard-setting Institutions. [ChanAmGASCh4Cag.pdf]
  2. ** American Government Accounting Standards, Chapter 5 “The Structure of American Government Accounting Standards” – focus on the accounting principles. [ChanAmGASCh5Cag.pdf]

Recommended Internet Exercises

  • Surf the websites of the FASAB and its sponsors: the Treasury Department (Financial Management Service), Office of Management and Budget (Office of Federal Financial Management), and the Government Accountability Office (Comptroller General).
  • Surf the websites of the GASB and the organizations represented on the Governmental Accounting Standards Advisory Council (GASAC).

Discussion Questions

  • See “Issues …” above,
  • Who sets government accounting standards in Italy? How?
  • Are Italian government accounting standards similar to or different from their American government GAAP?

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