The Challenges of Standards-Setting

Standards-setting is a delicate juggling act of trying to provide the best information to inform financial decisions while taking into account the natural resistance to change and the burden that falls upon those who are asked to provide and audit the newly desired information. In the governmental environment, standards-setting is complicated by several factors, including the complex nature of governments and their financial statements, and the fact that few citizens, taxpayers and others affected by government fiscal decisions know how to read financial statements, or take the time to do so. In this delicate juggling act of standards-setting, Federal Accounting Standards Advisory Board (FASAB) is exploring ways to meet its responsibility to ensure that the financial impact of the federal government's fiscal policy decisions are clearly and understandably reflected in its financial statements. One of the primary ways in which FASAB is working toward this goal is through their project on fiscal sustainability