Performance Measurement and the Accounting Standards Boards

Both the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) have launched long-term projects to address performance measurement. 

GASB issued concept statements in 1987 and again in 1994 emphasizing public accountability and linking it to external financial reporting.  At one point it seemed likely that the GASB would require performance measures (metrics) as a component of public institutions’ financial statements.  The current focus of the project is on encouraging experimentation with external reporting of performance information, and providing nonauthoritative guidance for the communication of performance information.  Recently the GASB published suggested criteria for effective performance reporting that included a direct request for input and experimentation by various branches of government as well as by public higher education.

The GASB SEA project page provides the latest developments on the GASB project.

The FASB project, Financial Performance Reporting by Business Enterprises, was established to provide standards for the presentation of information in financial statements that would improve the usefulness of that information in assessing the financial performance of a business enterprise.  A proposal was developed in 2001 and is expected to result in a final Statement of Financial Accounting Standards.  To further its goal of promoting convergence of accounting standards used internationally, the Board has partnered with the International Accounting Standards Board (IASB) on this project.

The FASB financial reporting project page provides the latest developments on the FASB project.