Certified Government Financial Manager (CGFM) Practice Exam

Authoritative GAAP, as defined by the Governmental Accounting Standards Board (GASB) Hierarchy of Accounting Standards, includes the comprehensive formal pronouncements issued directly by GASB, which primarily consist of GASB Statements. These statements are the highest level of guidance and carry the most weight in establishing generally accepted accounting principles for state and local governments in the United States.

GASB Statements provide the foundational framework for accounting and financial reporting standards that are applicable to governmental entities, ensuring consistency, transparency, and reliability in financial reporting practices. They are developed through a rigorous due process that includes input from stakeholders, thereby reflecting best practices in the public sector.

While other sources like GASB Technical Bulletins and FASAB Policies may offer guidance or address specific issues, they do not hold the same authoritative status as the GASB Statements themselves. International Accounting Standards, although important in a global context, do not apply specifically to U.S. governmental accounting standards under the GASB framework, further solidifying the primacy of GASB Statements as the core of Authoritative GAAP in this hierarchy.