The government-wide financial statements and the proprietary and fiduciary fund financial statements report financial information on a full accrual basis . The governmental fund financial statements, however, report what is commonly referred to as current financial resources on a modified accrual basis.
What should be the government-wide financial statements report on and why?
The government-wide statements bring the financial activity together in one place and report accrual-based economic resources information . The government-wide statements organize information by whether it relates to governmental activities or business-type activities.
How does the government use financial statements?
The government departments require published financial information for the purposes of taxation – company taxation and VAT . The government are decision makers and their forward economic plans are influenced by the performance of all businesses within various sectors in the economy.
What is government financial report?
Government financial reporting is the process whereby governments report their financial position and activities to the public at large . These reports are the standard that citizens, oversight bodies, and other stakeholders use to judge their government’s efficiency, effectiveness, and overall financial condition.
What do the government-wide financial statements report on?
The government-wide financial statements and the proprietary and fiduciary fund financial statements report financial information on a full accrual basis . The governmental fund financial statements, however, report what is commonly referred to as current financial resources on a modified accrual basis.
What are the 5 types of governmental funds?
According to the GAAFR (the Blue Book), governmental funds are “used to account for activities primarily supported by taxes, grants, and similar revenue sources.” Within the category of Governmental Funds, there are five types: General Fund, special revenue funds, debt service funds, capital projects funds, and ...
What are the two types of government-wide financial statements?
Two main aspects of government-wide financial statements are the financial statement and the statement of net assets . The financial statement shows the revenue collected and the amounts that the government spent.
Does government have a balance sheet?
The Balance Sheets show the government’s assets, liabilities, and net position . When combined with stewardship information, this information presents a more comprehensive understanding of the government’s financial position. The net position for funds from dedicated collections is shown separately.
What constitutes the basic financial statements of a government?
What constitutes the basic financial statements of a government? Financial section of the comprehensive annual financial report (CAFR) . ... Government-wide financial statements plus fund financial statements plus notes plus required supplementary information (RSI).
Who are the end users of financial statement?
Read this article to learn about the following thirteen users of financial statements, i.e., (1) Shareholders , (2) Debenture Holders, (3) Creditors, (4) Financial Institutions and Commercial Banks, (5) Prospective Investors, (6) Employees and Trade Unions, (7) Important Customers, (8) Tax Authorities, (9) Government ...
Who are users of financial statements?
Examples of internal users are owners, managers, and employees . External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.
What financial statements do customers look at?
Top 10 Most Common Users of Financial Statements. Financial statements. These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement , must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity in reporting at all levels ...
What are the disadvantages of government reports?
Reports are time-consuming to create . They are expensive to research and write. Technical reports can be difficult to understand. Implementing report recommendations can prove difficult.
Why does a government prepare a report?
A report prepared by the government authority to prove the information of its plans and achievement for its own purpose or public knowledge is known as government report. It is prepared by forming committee or commission from time to time.
Who uses government financial reports?
The Financial Report of the United States Government (Financial Report) provides the President, Congress, and the American people with a comprehensive view of the federal government’s finances, i.e., its financial position and condition, revenues and costs, assets and liabilities, and other obligations and commitments.
