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Analysis of Government-wide and government fund statements

Explain the measurement focus and basis of accounting used in preparing the two government-wide financial statements and the governmental fund financial statements.

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Just like the Financial Accounting Standards Board (FASB), the Government Accounting Standards Board (GASB) has issued concepts statements that communicate the framework by which the Board strives to establish consistent financial reporting standards for all entities within their jurisdiction. The GASB, as well as the FASB, is concerned with establishing standards for financial reporting to external users?those who lack the authority to prescribe the information they want and who must rely on the information management communicates to them.

With the advent of GASB Statement No. 34, "Basic Financial Statements?and Management's Discussion and Analysis ? for State and Local Governments" in 1999, the regulation and procedures for accounting, the minimum basic recordkeeping and reporting requirements for governmental agencies drastically changed. Central to the new model of financial reporting for state and local governments was the prescription for two categories of basic financial statements, government-wide and fund.

Designed to communicate in narrative, easily readable form the purpose of the basic financial statements and the government's current financial position and results ...

Solution Summary

Just like the Financial Accounting Standards Board (FASB), the Government Accounting Standards Board (GASB) has issued concepts statements that communicate the framework by which the Board strives to establish consistent financial reporting standards for all entities within their jurisdiction. The GASB, as well as the FASB, is concerned with establishing standards for financial reporting to external users?those who lack the authority to prescribe the information they want and who must rely on the information management communicates to them.

With the advent of GASB Statement No. 34, "Basic Financial Statements?and Management's Discussion and Analysis ? for State and Local Governments" in 1999, the regulation and procedures for accounting, the minimum basic recordkeeping and reporting requirements for governmental agencies drastically changed. Central to the new model of financial reporting for state and local governments was the prescription for two categories of basic financial statements, government-wide and fund.

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