The Three Standard-Setters: GASB, FASAB, FASB

Fiscal Manager Track · Module FM1
Topic 2 of 6 · 4 min read

The Three Standard-Setters: GASB, FASAB, FASB

If you only read one thing State/local government → GASB. Federal government → FASAB. Private business or nonprofit → FASB. Classification depends on what the entity is, not what it’s called.

Why This Matters

Not every organization outside the for-profit world follows the same rulebook. Knowing which one applies to which entity tells you what rules to expect.

This matters the moment you work across entity types, like reconciling a federal grant against your district’s own books.

What’s Actually Going On

  • GASB – Governmental Accounting Standards Board. Governs state and local governments: school districts, cities, counties, state government.
  • FASAB – Federal Accounting Standards Advisory Board. Governs the federal government itself.
  • FASB – Financial Accounting Standards Board. Governs for-profit businesses and private nonprofits alike.

Common trap: nonprofit doesn’t automatically mean GASB. A private nonprofit hospital or university is still FASB, because it’s private, not because of its tax status.

Is it a state or local government? GASB governs it Districts, cities, counties, states Yes No Is it the federal government? FASAB governs it Federal agencies Yes No Is it private — a business or a nonprofit? FASB governs it For-profits and private nonprofits Yes
Classification depends on what kind of entity it is, not what it’s called.

How This Applies

You’ll stay in GASB’s world for the rest of this track, since that’s where a district fiscal manager actually works.

You’ll still bump into FASAB concepts through federal grant compliance — Title I, IDEA, ESSER — and occasionally FASB concepts if you work alongside a private foundation or nonprofit partner.

Used again in FM1.5 Each standard-setter requires different statements. GASB → government-wide + fund statements. FASAB → Statement of Net Cost, Budgetary Resources. FASB → Statement of Financial Position, Activities, Cash Flows.
Try it: FM1 worksheet, Entities 1-4