It was organized in 1984. Like FASB it falls under the umbrella of the Financial Accounting Foundation. It makes rules for state and local government and nonprofits controlled by government. It follows due process in that interested parities can comment before rules are accepted. GASB is independent in that its costs are covered by contributions.
Governmental funds handle most of the taxes and non business like expenditures.
Governmental funds are guided by the compliance and liquidity model. This governmental category includes the general fund, special revenue funds, capital project funds, and debt service funds historical cost Historical cost is one methods for valuing assets, liabilities, or equity. Historical cost means the price originally paid or the value given. Often auxiliary costs are included such as commission, fees, and transportation. Both business and government rely heavily on historical cost since it is usually the easiest to attach to an item.