The comparison and the contrast of the GASB and the FASB accounting are, going to be four major areas which are recognition, measurement, display, and disclosure. These differences will know if the item will show up on a financial statement. The measurement difference will show to how the items will be included on a financial statement. As an example both of the FASB and the GASB will show that the pension, and the liabilities will be recognized which will need different ways of to measure the amount that needs to be recognized. But the FASB will not show the option for having separate assets, and the liabilities in the current and the noncurrent that is based on the ARB 43.
Also another difference between the FASB and the GASB is the Pell grants these will be recognized on the GASB as a grant revenue, but the FASB will not be counter as any revenue. Now for the comparison, both of these methods are sanctioned and are reporting to the American Institute of the Certified public accountants. These methods are able to be used as one group. The objectives of these entities are that the FASB a more concerned with the market and how the stock market is performing, while the GASB objective is that the primary outline of the government’s structure and the service it gives.
Such as a representative that is from the government and there is a separation of powers, it uses a fund to use accounting for controlling purposes. The difference between the modified accrual basis of accounting from the full accrual accounting is that the timing of the recognized of the revenue and the expenditure, the accrual accounting the revenue will show that when the revenue is earned are is able to be measured, then the expenditures will be recognized when the liabilities are received there will be an exception to being recognized of these expenditures when the liability is received.