What is the authoritative body for state and local government?
Government Accounting Standards Board (GASB).
What are the differences between not-for-profit and for-profit organizations that necessitate a different accounting and reporting model for not-for-profit organizations?
- Principal mission is to provide goods and services;
- Primary resources are exchanged through non-exchange transactions;
- Restrictions on resources;
- No individual ownership interests.
What financial resource is unique to governmental entities?
Proceeds from taxation
- One of the unique characteristics of government is its power to force involuntary financial resource contributions through taxation.
- No other form of organization has this power.
What is the primary authoritative body for determining the measurement focus and basis of accounting standards for governmental fund operating statements?
- The Governmental Accounting Standards Board (GASB) was established in 1984 to promulgate standards of financial accounting and reporting for the activities and transactions of state and local governments.
- The GASB's authority includes determining the measurement focus and basis of accounting standards for governmental fund operating statements.
What are GASB's
Elements of Financial Statements?
*This is a Hot Topic
- Deferred Outflow of Resources
- Deferred Inflow of Resoures
- Net Position
What is GASB's Hierarchy of Reporting?
- Recognition in basic financial statements
- Note disclosure
- Required Supplemental Information (RSI)
- Other Supplemental Information (SI)
- Not Required
- Not Required
What is GASB's paramount objective of financial reporting?
- Intraperiod Equity
According to GASB statement No.6 what are the two approaches to measuring assets and liabilities?
Initial amount—determined at the time the assets is acquired or a liability is incurred.
Remeasured amounts—determined as of the date of the financial statements.
According to GASB, who are the users of the external financial reports?
- Legislative and Oversight Bodies
- Investors and Creditors
What are Governmental Funds?
Accounts for sources, uses, and balances of general government financial resources
What is a Proprietary Fund?
Accounts for Business Type Activities
What is a Fiduciary Fund?
Accounts for resources held by the government in its capacity as trustee or agent for the benefit of others.