Certified Government Financial Manager (CGFM) Practice Exam

Category B in the FASAB (Federal Accounting Standards Advisory Board) Hierarchy of Accounting Standards encompasses technical bulletins issued by recognized authoritative entities like the AICPA (American Institute of Certified Public Accountants). These bulletins provide guidance concerning specific accounting and financial reporting issues that arise in practice and help clarify and interpret standards established at higher levels in the hierarchy.

Understanding this category is essential for government financial managers since technical bulletins can address the nuances of financial reporting and lead to more informed and compliant financial practices in the public sector. They serve as a supplemental resource that helps entities apply generally accepted accounting principles, ensuring that financial reporting is both relevant and reliable.

While statements from government entities, implementation guides, and commercial guidelines are important in their own rights, they do not specifically represent the authoritative guidance categorized under Category B in the FASAB Hierarchy. Therefore, the inclusion of technical bulletins in Category B emphasizes their role in providing detailed clarifications and directives that help navigate the complexities of governmental accounting and financial management.