Which board was established to create accounting rules specifically for state and local governments?

The Government Accounting Standards Board (GASB) was established to create accounting standards specifically tailored for state and local governments in the United States. This board addresses the unique financial reporting needs and challenges faced by these entities, which often differ significantly from those of private-sector organizations or federal government operations.

GASB's standards promote transparency, accountability, and comparability in government financial reporting, ensuring that stakeholders, including citizens, policymakers, and investors, can make informed decisions based on consistent and reliable financial information. The board's authoritative frameworks help guide how state and local governments prepare and present their financial statements, ultimately enhancing public trust in governmental financial management.

In contrast, organizations like the Financial Accounting Standards Board (FASB) primarily focus on the private sector, while the Federal Accounting Standards Advisory Board (FASAB) deals with federal government accounting standards. The International Public Sector Accounting Standards Board (IPSASB) focuses on international public sector accounting standards, which may not align with the specific needs or regulatory requirements of U.S. state and local governments.