Authoritative GAAP for state and local governments divided into two categories with the first category having more authority than the second. Explain the sources of GAAP found in both of these categories.
Explanation of Solution
Two categories of authoritative GAAP for local and state governments are Category A and Category B. Where category A is build up from GASB official statements and also interpretations that released previously still remain in effect and highest level of authority are also included. To provide the guidance of this type about U.S GAAP other method used by board. Category B is build up from GASB technical bulletins, any literature of AICPA, and implementation guides of GASB which has been cleared by GASB. Auditors and accountants in order to establish proposed reporting treatment validity they look first category A then category B in case of answer is not found.
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Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,