To make sure you are up to date on the special guidelines the GASB has declared, your manager asked you to research GASB Statement No. 56.
Write 500-750 words that addresses the following:
1. When was GASB Statement No. 56 initiated?
2. In your own words, what is the essence of the new ruling?
3. Why did the GASB probably deem it as being necessary?
4. How might GASB Statement No. 56 change the activities of any accountant performing governmental accounting?
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The new ruling aims to include all the provisions and policies of accounting under one roof so that there is efficiency and higher level of control over the operations and that the people are able to refer to one common source for all their requirement for accounting guidance. The basic objective behind this is to make sure that the basic accounting principles like related party transactions, subsequent events and going concern, are followed diligently and adequately by the enterprises and that there is higher efficiency of the operations of the enterprise.