Jurisdictional Conflicts and Conceptual Differences in Standard Setting: FASB And GASB

Since standards in the US differ from those in others, that "window of opportunity" for international agreement on accounting standards, if achieved, portends more conflict or pressure for change on the national scene. Therefore, it should not be surprising that different standard setters, such as those in different countries, when solving the same problem often propose different solutions. Many other possible solutions have been considered by the trustees, including dividing the responsibility between two boards, GASB and FASB, not according to ownership but rather into two areas, for-profit and not-for-profit organizations, each to include both governmental and private sector entities. The FASB's framework emphasizes decision usefulness of financial information and the need for comparability in financial reporting. A governing concept of the GASB's framework is derived from the fact that states and their subdivisions are generally subject to balanced budget laws.