Government Accounting Standards

Government Accounting Standards refer to the rules and guidelines that public sector entities, like federal, state, and local governments, must follow when preparing their financial statements. These standards ensure transparency, consistency, and accountability in reporting financial information, making it easier for citizens and investors to understand how taxpayer dollars are being managed. By adhering to these standards, governments can foster trust and provide a clearer picture of their financial health, ensuring that funds are used effectively for public services and programs. Organizations like the Governmental Accounting Standards Board (GASB) develop and maintain these standards.