Government accounting and financial reporting free download as powerpoint presentation. Pdf public sector accounting standards and quality of. Government accounting and financial reporting aims to protect and manage public money and discharge accountability. Basics an overview of governmental accounting and financial. Pdf chapter 02 principles of accounting and financial. History of the governmental accounting standards board. Bodies that meet the criteria set out in the 201920 government financial reporting manual. The effectiveness of setting governmental accounting standards. Introduction to accounting and financial reporting for governmental and notforprofit entities. Identify and explain the characteristics that distinguish. In june 2017, the gasb established new guidance that establishes a single approach to accounting for and reporting leases by state and local governments. Internal financial reporting is developed for management to meet specific managerial needs and preferences, with management determining the content, format, and timing of the reports. Debt service funds used to account for the accumulation of resources for, and the payment of, general longterm debt principal and interest.
Why governmental accounting and financial reporting isand. The foundation solutions manual answers to questions question 21. Generally accepted accounting principles gaap are uniform minimum standards of and guidelines to financial accounting and reporting. Why governmental accounting and financial reporting isand should bedifferent introduction and scope from time to time, the question is raised as to why state and local governments herein after referred to as governments cannot simply apply the same set of accounting and financial reporting standards that business enterprises 2. The government accounting standards board is an independent, nonpolitical organization founded in 1984, to promote clear, consistent, transparent and comparable financial reporting for. In nigeria, government accounting processes have been conducted within the general framework of the principles of fund accounting but the application of these principles to financial reporting has. Governmental accounting and financial reporting standards aim to address this. The needs of the users of governmental financial reports are reflected in differences in the components of the conceptual framework for. Chapter 2 state and local government accounting and financial reporting model. Scribd is the worlds largest social reading and publishing site. Chapter 02 principles of accounting and financial reporting for state and local governments 21 chapter 2. It has been agreed that ifrs 16 leases is effective in the public sector from 1 april 2020. Gasb white paper governmental accounting standards board. Special purpose external best practices back to basics an overview of governmental accounting and financial reporting by michael genito.
Doc chapter 2 state and local government accounting and. These purposes, and the nature of public goods and tax financing, give rise to. Pdf public accountability and government financial reporting. Mid1930s the first blue book governmental accounting, auditing, and financial reporting gaafr was issued and was generally considered generally accepted accounting principles gaap for governments. The government financial reporting manual is the technical accounting guide for the preparation of financial statements. The approach is based on the principle that leases are financings of the right to use an underlying asset. Capital projects funds used to account for financial resources that are used to acquire or construct major general capital assets or facilities. The foundation of gaap consists of the financial accounting concepts issued by the fasb. The house of gaap rests on a foundation of basic concepts and broad principles that underlie financial reporting. Everyone involved in overseeing or managing government operations needs to understand the basics of publicsector accounting and financial reporting. The financial reporting model set up by the governmental. Other comprehensive basis of accounting ocboa financial statements. Why governmental accounting and financial reporting isand should bedifferent.