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GAS 76establishes the hierarchy of generally accepted accounting principles (GAAP) for state and local governmental entities as follows:
Authoritative GAAP. In descending order of authority, the sources of authoritative GAAP are:
- Category A -- GASB Standards and Interpretations.
- Category B -- GASB Technical Bulletins, GASB's authoritative Implementation Guides (2015 and later – see ARM 9812.133), and AICPA literature that has been cleared by the GASB. Such literature includes selected AICPA Audit and Accounting Guides including State and Local Governments (AAG-SLV), chapter 15 of Health Care Entities, chapter 12 of Gaming, and certain guidance in Property and Liability Insurance Entities. AICPA literature that has been cleared by the GASB contains a statement to that effect.
If the accounting treatment for a transaction or other event is not specified in Category A or Category B GAAP, a governmental entity should consider applying authoritative GAAP for similar transactions or events by analogy before considering nonauthoritative literature. In doing so, the transactions or events should be sufficiently similar to those covered by the authoritative guidance.
Nonauthoritative accounting literature. If the accounting treatment for a transaction or other event is not specified by authoritative GAAP, a governmental entity may consider nonauthoritative accounting literature from other sources that does not conflict with or contradict authoritative GAAP. Sources of nonauthoritative accounting literature include (but are not limited to) GASB Concepts Statements; pronouncements and other literature of the FASB, IASB, IPSASB, and FASAB; AICPA literature not cleared by the GASB; widely recognized and prevalent practices in state and local government; literature of professional associations or regulatory agencies; and accounting textbooks, handbooks, and articles. In evaluating the appropriateness of nonauthoritative literature, an entity should consider the consistency of the literature with the GASB CON, its specificity, its relevance to particular circumstances, and the general recognition of the issuer or author as an authority.

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