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Accounting for Government and Nonprofit Entities

- A description of the essential principles of accounting for nonprofit organizations and municipal agencies
- A description of the unique issues related to accounting processes for these entities.
- The reasons you advocate for ethical accounting practices for nonprofit organizations and municipal agencies.

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- A description of the essential principles of accounting for nonprofit organizations and municipal agencies

The essential principles for accounting for nonprofit and municipal entities are similar to for-profit entities with some exceptions. There are principles that just apply to nonprofit (SFAS 117) and some for-profit GAAP that many not apply (such as revenue recognition). In general, the emphasis on fund statements is on individual activities or agencies, typically using a modified accrual basis rather than the full accrual basis in for-profit GAAP.

For example, fund accounting and government-wide financial statements provide users with a balance sheet and statement of cash flows, similar to for-profit GAAP, but do not publish an Income Statement. Instead, they have a Statement of Activity. The essential differences are that nonprofit/municipal agencies have fewer revenue recognition issues and more issues ...

Solution Summary

Your tutorial is 451 words and a references and gives examples of the general differences and specific issues with nonprofit and municipal accounting. It mentions why ethical standards are particularly high in these agencies.

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