What is the role of the Governmental Accounting Standards Board (GASB)?

The Governmental Accounting Standards Board (GASB) plays a crucial role in establishing and improving standards of accounting and financial reporting specifically for U.S. state and local governments. This is essential because governmental entities often deal with public funds and require transparency and accountability to the citizens they serve.

By developing accounting standards, GASB ensures that financial reports provide consistent, reliable information that can be compared across different governments. This promotes better financial management and helps stakeholders, including taxpayers, understand how public resources are being utilized. Moreover, the standards set by GASB improve the overall quality of financial reporting, aiding stakeholders in making informed decisions.

In this context, while the other options mention important functions related to government, they do not accurately describe the specific role of GASB in shaping the accounting framework that governs how state and local governments report their financial activities.