Statement of Governmental Accounting Standards (SGAS)

The Statement of Governmental Accounting Standards (SGAS) sets the rules for how government entities should record and report their financial activities. Its purpose is to ensure transparency, consistency, and comparability across different government agencies by establishing clear guidelines for financial statements. SGAS covers topics like budgeting, spending, assets, and liabilities, enabling stakeholders—such as citizens, auditors, and policymakers—to understand a government’s financial health and accountability. Think of it as a standardized framework that helps governments communicate their financial position accurately and reliably.