Question

Evaluate the composition of the Federal Advisory Standards Advisory Board (FASAB). How is it funded and what is its purpose? Discuss any active projects of the FASAB. Do you think the FASAB is an independent standard-setting organization? If so, why? Analyze whether the FASAB is proprietary based on the information you know about a proprietary organization.

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Answer 1

The Federal Accounting Standards Advisory Board (FASAB) is an advisory committee that develops accounting standards for U.S. government agencies. The FASAB is designed to improve government accountability by issuing federal financial accounting and reporting standard that adhere to industry best practices.The Board has nine members- three federal and six public or non-federal members. The head of each of FASAB's three sponsoring agencies selects a federal member to serve on the board and represent the agency without a fixed term. The six public or non-federal members are appointed by the sponsors after considering recommendations of ab panel converted by FASAB's chairperson. The panel consists of not more than seven members, and includes the three FASAB members who represent the sponsoring as well as representative from the AICPA, the Accounting Research Foundation, and the Financial Accounting Foundation. The sponsors select the Board's chairperson from among the non-federal members.Established in 1973, the Financial Accounting Standards (FASAB) is the independent, private-sector, not-for-profit organization. Proprietary accounting involves federal entities recording and accumulating financial information on transactions and balances for purposes of reporting both internally to management and externally in an entity's financial statements. Most federal entities are subject to proprietary accounting standards promulgated through the Federal Accounting standards Advisory Board (FASAB)>