Accounting Standards for Government

Walter E. Williams asks why the U.S. government doesn’t live up to basic accounting standards?

Corporations employ accounting practices promulgated by the Financial Accounting Standards Board (FASB) that established Generally Accepted Accounting Principles (GAAP). Fannie Mae, Freddie Mac and government agencies have accounting practices that don’t come close to, and never did, the honesty of private accounting practices. Accounting fraud and deception are the dominant features of government agencies. If a private business kept and cooked the books, like government agencies do, the top executives would go to jail. Shouldn’t the accounting standards businesses have to meet be applied to Washington? My answer is yes and if a congressman says no, I’d like for him to tell us why.

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3 Responses to Accounting Standards for Government

  1. Hy Mayerson says:

    Good, very good question.
    Things have gotten out of hand since this was published here on 2008 10 09.
    Financial giants proclaim they do not have to divulge what they did with the
    billions congress gave them.
    Escrow needs to be better defined than Wiki does it ( It is a powwerful legal term. I think there is an escrow failure in the mis- application of the bailout billions):
    Types of escrow

    Escrow is best known in the United States in the context of real estate (specifically in mortgages where the mortgage company establishes an escrow account to pay property tax and insurance during the term of the mortgage). Escrow companies are also commonly used in the transfer of high value personal and business property, like websites and businesses, and in the completion of person-to-person remote auctions (such as eBay). In the UK escrow accounts are often used during private property transactions to hold solicitors’ client’s money, such as the deposit, until such time as the transaction completes.

    Escrow is also known in the judicial context. So-called escrow funds are commonly used to distribute money from a cash settlement in a class action or environmental enforcement action. This way the defendant is not responsible for distribution of judgment monies to the individual plaintiffs or the court-determined use (such as environmental remediation or mitigation). The defendant pays the total amount of the judgment (or settlement) to the court-administered or appointed escrow fund, and the fund distributes the money (often reimbursing its expenses from the judgment funds).

    In some jurisdictions, real estate brokers are considered to act as escrow agents when they accept deposits or earnest money for the purchase of real property. In many jurisdictions, the duties of such agents are codified.”
    to be continued…

  2. Hy Mayerson says:

    talk about failure of accounting standards,
    i think i m losing my mind…
    arrest congress now:
    http://www.denverpost.com/commented/ci_11288128

    Congress does not seem the least bit mortified or intimidated,
    therefore I wonder if they planned this…

    something is hapeening here,
    & you do know what it is,
    don’t u mr bush?:
    http://www.denverpost.com/commented/ci_11288128

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