Credits in the CreditScope database follow the financial reporting standards set forth by either the Financial Accounting Standards Board (FASB) or the Governmental Accounting Standards Board (GASB). Both FASB and GASB are independent organizations that fall under the administration of the Financial Accounting Foundation (FAF), and both are considered the authoritative voice in financial reporting.
FASB, established in 1973, provides financial reporting guidelines for nongovernmental entities, including certain not-for-profit entities. GASB, founded in 1984, sets financial reporting standards for state and local governments.
Within CreditScope, credits in the Hospital, Life Care, Nursing Home, Private Higher Education, and certain Not-for-Profit entities typically follow the financial reporting standards established by FASB. Credits in the State, County, City, School District, Public Higher Education, and Special District sectors generally adhere to GASB guidelines. Credits in the Airport, Gas, Retail Electric, Toll Road and Water/Sewer sectors usually follow GASB standards as well, since they tend to report as enterprise funds found in a state or local government's comprehensive annual financial report.
Several sectors include credits that follow GASB standards, while others in the same sector follow FASB standards. Most credits within the Hospital sector, for example, follow the familiar FASB guidelines, while some county hospital credits follow GASB guidelines.
The combined efforts of FASB and GASB provide value to the end users of financial statements by promoting consistency, continuity and transparency in financial reporting.