ONE POSITION ARGUES THAT THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) SHOULD BE HELD SOLELY RESPONSIBLE FOR ESTABLISHING THE FINANCIAL ACCOUNTING CONCEPTS AND STANDARDS TO WHICH STATE AND LOCAL GOVERNMENTS WOULD CONFORM. THIS IS BELIEVED PREFERABLE TO ANY OTHER ARRANGEMENT BECAUSE OF THE FASB'S CAPACITY TO MEET THE NEED FOR NEUTRALITY, FOR SIMILARITY OF FINANCIAL ACCOUNTING AND FINANCIAL STATEMENTS OF ALL TYPES OF ENTITIES, AND FOR A UNIFORM APPROACH TO FINANCIAL ACCOUNTING CONCEPTS. THE FASB IS THE ONLY EXISTING BODY THAT HAS THE INDEPENDENCE AND AVAILABLE EXPERTISE NEEDED TO ESTABLISH CONCEPTS AND STANDARD THAT WILL BE RELEVANT, RELIABLE, AND NEUTRAL. HOWEVER, OTHERS ARGUE THAT THE NATIONAL COUNCIL ON GOVERNMENTAL ACCOUNTING (NCGA) IN COOPERATION WITH THE FASB AND THE COUNCIL OF STATE GOVERNMENTS SHOULD BE RESPONSIBLE FOR THE DEVELOPMENT OF GOVERNMENTAL ACCOUNTING AND FINANCIAL REPORTING STANDARDS. THIS POSITION IS BASED ON A HISTORY OF STATE AND LOCAL GOVERNMENT COOPERATION WITH NCGA IN THE PURSUIT OF EFFECTIVE GOVERNMENTAL FINANCIAL MANAGEMENT. FURTHER, NCGA HAS ALREADY INITIATED A PROJECT TO DEVELOP THE CONCEPTUAL FRAMEWORK FOR MUNICIPALITIES IN THE USE OF PREFERRED ACCOUNTING PRINCIPLES. RATHER THAN THE FASB'S ESTABLISHING A COMPETING PROJECT, ITS COOPERATION WITH NCGA AND REPRESENTATIVES OF STATE AND LOCAL GOVENMENTS IN THE PROJECT UNDERWAY IS BELIEVED TO BE THE MOST REASONABLE APPROACH. (RCB)