Describe the difference between fund accounting and the accounting methods required by SAFS Nos. 116 and 117.
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Difference between fund accounting and requirements of SFAS 116 and 117
SFAS 116 and 117
1. It has replaced the term 'fund balance'with'net losses. This is to reduce the scope of confusion.
2. It has not switched to net assets from fund balance.
3. These rules put emphasis on the organization as a whole and not on funds that are artificial pieces.
4. The SFAS 116 and 117 discourage the reporting of funds; ...
This solution gives you a detailed discussion on SAFS number 116 and 117.