Governmental Accounting Standards Board (GASB)
The independent organization that sets accounting and financial reporting standards for U.S. state and local governments.
How It Works
GASB establishes standards that determine how governments report financial information. Key recent GASB standards include GASB 67/68 (pension reporting — requiring governments to report pension liabilities on the balance sheet), GASB 75 (other post-employment benefits), and GASB 87 (leases). GASB standards significantly affect how a city's financial health appears on paper. The shift to GASB 67/68 in 2015 caused many cities to report dramatically larger liabilities.
Related Terms
- Generally Accepted Accounting Principles (GAAP) — The standardized accounting rules that governments follow when preparing financial statements, as promulgated by the Governmental Accounting Standards Board (GASB).
- Comprehensive Annual Financial Report (CAFR/ACFR) — A city's official annual financial report, audited by independent accountants, containing detailed financial statements, statistical data, and management discussion.
- Unfunded Liability — The difference between a pension plan's projected liabilities (what it owes to current and future retirees) and its current assets. Also called the unfunded actuarial accrued liability (UAAL).
About This Definition
This definition is part of the CitySpend Municipal Finance Glossary — 59 terms explaining how city governments fund and manage public services. All definitions are written in plain language for taxpayers, journalists, students, and municipal bond investors.