Discuss AGA GAFRB Exam Topic 3 Question 9

The Federal Financial Management Improvement Act of 1996 formally recognized which of the following organizations as the standard-setting body for federal accounting and reporting standards?

AOMB

BFASB

CGAO

DFASAB
The Federal Financial Management Improvement Act (FFMIA) of 1996 established the requirement for federal agencies to implement and maintain financial systems that comply with federal accounting standards. It formally recognized the Federal Accounting Standards Advisory Board (FASAB) as the source of GAAP for federal agencies.
FASAB's standards are authoritative for federal entities, much like GASB for state and local governments and FASB for private-sector entities.
Relevant Reference:
Federal Financial Management Improvement Act of 1996 (Public Law 104--208, Title VIII)
FASAB Handbook -- Introduction & Authority
GAO Federal Accounting Standards Overview
Answer : D. FASAB

Suggested Answer: D

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22 comments · newest first

Phuong 9 months ago

Really? I had no idea FASAB was the one!

Teddy 9 months ago

Wait, I thought it was GAO?

Crista 9 months ago

Totally agree, FASAB sets the standards for federal accounting.

Alpha 9 months ago

FASAB is the right answer!

Amber 10 months ago

OMB doesn't set the standards, just oversees them.

Jacqueline 11 months ago

I feel like I’ve seen a question like this before, and I think FASAB was definitely mentioned as the standard-setting body.

Aron 11 months ago

I keep mixing up FASAB and GAO; I hope I remember that FASAB is the one recognized by the FFMIA.

Shaun 11 months ago

I remember studying that FASAB sets the standards for federal accounting, similar to how FASB does for the private sector.

Marylyn 11 months ago

I think FASAB is the right answer, but I’m not completely sure if it’s the only one recognized by the FFMIA.

Bulah 12 months ago

This seems like a straightforward question about the Federal Financial Management Improvement Act. I'm pretty sure the answer is D, FASAB, since they are the recognized standard-setting body for the federal government. I'll double-check my understanding, but I feel good about this one.

Della 12 months ago

I'm a bit confused on this one. I know it has to do with federal accounting standards, but I'm not sure which organization was formally recognized. I'll have to review my notes and try to eliminate the options that don't seem right.

Gary 12 months ago

Okay, let me see if I can break this down. The question is asking about the standard-setting body for federal accounting, and the Act is mentioned, so I'll focus on that. I think the answer is D, FASAB.

Mollie 1 year ago

Hmm, this question is a bit tricky. I'll need to think it through carefully. I know the Act established standards for federal agencies, but I'm not sure which specific organization it recognized.

Rodney 1 year ago

I'm pretty confident I know the answer to this one. The Federal Financial Management Improvement Act of 1996 formally recognized FASAB as the standard-setting body for federal accounting and reporting standards.

Tonja 1 year ago

D. FASAB - makes sense, they're the go-to for federal accounting standards. Glad the FFMIA cleared that up.

Cassi 1 year ago

FASAB? That's a new one for me. I would have guessed the OMB since they seem to have a hand in everything federal.

Tawny 10 months ago

↳ replying to Cassi

Surprising how many people overlook it!

Leah 10 months ago

↳ replying to Cassi

Yeah, FASAB sets the standards for federal accounting.

Alease 10 months ago

↳ replying to Cassi

I thought OMB was the main one too!

Rana 10 months ago

↳ replying to Cassi

FASAB is definitely less known.

Arthur 1 year ago

Why do you think it's FASAB?

Teddy 1 year ago

I think the answer is FASAB.

AGA GAFRB Exam - Topic 3 Question 9 Discussion