Which board is responsible for setting accounting standards for governments, excluding federal governments?

The Board responsible for setting accounting standards for state and local governments, excluding federal governments, is the Governmental Accounting Standards Board (GASB). GASB plays a crucial role in establishing accounting and financial reporting standards for governmental entities, ensuring transparency and accountability in public sector financial reporting. By creating guidelines that improve the quality and comparability of financial information, GASB helps government entities adhere to a standardized format, which ultimately aids stakeholders, including taxpayers and policymakers, in making informed decisions.

In contrast, the other organizations listed have broader or different focuses. The Financial Accounting Standards Board (FASB) sets accounting standards for private sector entities, including businesses, which do not apply to governmental reporting. The National Council on Governmental Accounting (NCGA) was a predecessor body to GASB and has since been dissolved; its functions have been absorbed by GASB. The International Accounting Standards Board (IASB) is responsible for international financial reporting standards, which are applicable mostly to public corporations and not specifically designed for government accounting in the United States. Therefore, GASB is the appropriate body for establishing standards for state and local government financial reporting.