Certified Government Financial Manager (CGFM) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

The Federal Accounting Standards Advisory Board (FASAB) was specifically established to improve federal financial reporting and to publish accounting and financial reporting standards for federal government entities. This organization plays a crucial role in enhancing transparency and accountability in federal financial reporting, ensuring that standards are aligned with the unique nature of governmental financial activities.

FASAB’s standards are designed to meet the needs of users of federal financial statements, including Congress and other stakeholders. This focus on federal reporting requirements is what differentiates FASAB from similar organizations that address accounting standards for other sectors, such as the Governmental Accounting Standards Board (GASB) for state and local governments or the Financial Accounting Standards Board (FASB) for private-sector entities. The International Public Sector Accounting Standards Board (IPSASB) develops accounting standards for public sector entities internationally, but it does not focus specifically on U.S. federal reporting.

In essence, FASAB’s mandate ensures that federal financial reporting meets the needs of its users and enhances the credibility of financial statements in the public sector.