Certified Government Financial Manager (CGFM) Practice Exam 2026 – Your All-in-One Guide to Exam Success!

The purpose of an Exposure Draft (ED) in the GASB (Governmental Accounting Standards Board) process is to gather public comments before issuing a final standard. The ED represents a preliminary version of a proposed accounting standard that is circulated for public review and feedback. This step is crucial in the standard-setting process as it allows various stakeholders, including accountants, auditors, financial officials, and the public, to provide input on the proposed changes. Their comments can reveal potential issues, clarifications needed, or practical impacts of the standard that the GASB may not have fully considered.

By inviting public opinion before finalizing the standard, GASB aims to ensure that the standards serve the public interest effectively and that they are feasible for implementation in governmental accounting practices. This process also enhances transparency and accountability in the development of accounting standards, enabling stakeholders to engage in the creation of regulations that govern public sector financial reporting.