You have heard about the provisions of GASB Statement 45 and you have learned that the state of Texas fought the application of the standards. There are risks that the GASB might face if it decided to yield to the demand of Texas officials and cancel Statement 45. What is your view on these two paragraphs? Please see below.

GASB was established to improve accountability and transparency in financial accounting and reporting standards, which provides useful information to a wide array of stakeholders, not just the government. I think GASB's value lies within their comprehensive and independent process and their ability to remain impartial.

If GASB had yielded to the demands of Texas officials and rescinded Statement 45, they are essentially relinquishing their power of neutrality, which could render themselves and their mission obsolete. Seeing how all other states besides Texas, were willing and able to conform, relinquishment would undermine the accounting community's confidence in GASB's judgment and effectiveness, playing into the GFOA future narrative that GASB has run its course and its mission is complete.