governmental accounting definition
Governmental accounting is an umbrella term which refers to the various accounting systems used by various public sector entities.In the United States, for instance, there are two levels of government which follow different accounting standards set forth by independent, private sector boards.At the federal level, the Federal Accounting Standards Advisory Board (FASAB) sets forth the accounting standards to follow.Similarly, there is the Governmental Accounting Standards Board (GASB) for state and local level government.he governmental accounting system has a different focus for measuring accounting than private sector accounting. Rather than measuring the flow of economic resources, governmental accounting measures the flow of financial resources.