The Governmental Accounting Standards Board (GASB) was organized in 1984 under the auspices of the Financial Accounting Foundation to establish financial accounting and reporting standards for state and local government entities. These standards are important because external financial reporting can demonstrate financial accountability to the public. They are the basis for many legislative and regulatory decisions, as well as investment and credit policies. The foundation is responsible for selecting the seven members of GASB and its Advisory Council, funding their activities, and exercising general oversight. Except for the chairman of GASB, all members are part time.

GASB's mission is to establish and improve standards of state and local governmental accounting and financial reporting that will (1) result in useful information for users of financial reports and (2) guide and educate the public, including issuers, auditors, and users of those financial reports. To accomplish its mission...