Explore BrainMass
Share

Understanding state and local financial reporting

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

What are three key components a financial report user must know to understand state and local governments?

© BrainMass Inc. brainmass.com October 16, 2018, 8:05 pm ad1c9bdddf
https://brainmass.com/business/accounting/understanding-state-and-local-financial-reporting-137522

Solution Preview

Note: For your convenience, I have attached a fully formatted APA paper to this post.

Governmental and not-for-profit organizations differ in many important ways from business organizations. Accounting and financial reporting for governmental and not-for-profit organizations is also markedly different from accounting and financial reporting for businesses. Accordingly, an understanding of how these organizations differ from business organizations is essential to understanding the unique accounting and financial reporting principles that have evolved for governmental and not-for-profit ...

Solution Summary

Governmental and not-for-profit organizations differ in many important ways from business organizations. Accounting and financial reporting for governmental and not-for-profit organizations is also markedly different from accounting and financial reporting for businesses. Accordingly, an understanding of how these organizations differ from business organizations is essential to understanding the unique accounting and financial reporting principles that have evolved for governmental and not-for-profit organizations.

In its Statement of Financial Accounting Concepts No. 4, the Financial Accounting Standards Board (FASB) noted the following three key components that a financial report user must know in order to distinguish governmental and not-for-profit entities from business organizations (FASB, 1980, p. 11):

$2.19
Similar Posting

State of South Carolina Entities

Write a paper of no more than 500 words that answers the following questions for The state of South Carolina:

•What is the mission and purpose of the organization
•What are the primary sources of funding for each
•What are the primary expenditures for each
•How successful is each entity in terms of meeting its mission and staying fiscally solvent

View Full Posting Details