Premium Essay

Government Reporting

In: Other Topics

Submitted By jerusalem
Words 298
Pages 2
Professional managers and business owners are to serve the interests of both its internal and external stakeholders by delivering maximum profit results and a stable financial condition of their respective organizations. To do this, they must be able to control, mitigate or eliminate the many potential risks that affect the business organization.
On top of unwanted losses and litigation, they are faced with tax assessments from various government agencies. These, at times, may compel them to adopt a stringent method of monitoring and recording financial transactions to minimize these exposures.
One of the strategies is to focus on particular risk areas including taxation. In doing so, professional managers and business owners may be compelled to maintain a separate set of records in addition to other financial records used internally.
For as long as the objective of preparing a separate record is clean and without the intention to evade tax payments due and to defraud the respective government tax agencies, this so-called practice is within the ethical standards of the business circle as a whole.
To erase any cloud of doubt and to control and avoid accounting scandals, several codes of ethics governing the practice of recording and reporting financial information, has been crafted. Provisions on integrity, disclosure, management representation, competence, independence and many others are often emphasized in the preparation and presentation of financial data.
In the end, however, it is only with a strong moral conviction of owners and managers to conduct their undertakings with utmost integrity that fulfils the objective of these codes. But this may be easier said than done – for beyond a clean business intention lie the woes of taxation and other risks that can cause the moral standards of these owners and managers to lean on the darker side of

Similar Documents

Free Essay

Reporting Options Available to Government Colleges and Universities

...the main reporting options available to government colleges and universities? Do they have to prepare fund statements? Explain. Universities are permitted to prepare financial statements the same way corporations report special purpose entities. In other words they can report business type enterprises as SPI’s and not report the funds in fund statements. Public colleges and university must follow GASB pronouncements like other governmental institutions. They are allowed to follow the same reporting requirements as other special-purpose governments with a loophole that requires a choice in reporting. They can report as a special-purpose entity engaging in business-type activities only, governmental-type activities only, or both. The main sources of revenue for public institutions are state appropriations and grants.  The AICPA reporting model is widely used.  Public colleges and universities must use the same FASB standards as other NFP entities. Governmental universities use the GASB statement no 34 to report business type activities. They use government-wide statements but do not use fund statements. They use a full accrual basis and report in consolidated financial statements. The government colleges and universities only engaged in governmental activities must present a fund statement using the structure specified in GASB statement #34. The main reporting options for government colleges and universities according to statement no. 34 states that “a government may use an...

Words: 646 - Pages: 3

Premium Essay

Overview of Financial Reporting for State and Local Governments

...Financial, and Statistical sections. Answer: True 3. The introductory and statistical sections of a CAFR are required to be audited. Answer: False 4. State and local governments are not required to prepare a CAFR. Answer: True 5. Combining statements are required whenever a non-major column is used in one of the fund financial statements. Answer: True 6. A complete CAFR includes combining financial statements to reflect major funds. Answer: True 7. In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental, proprietary and fiduciary funds. Answer: True 8. In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental funds only. Answer: False 9. The General Fund is not always considered to be a major fund when preparing fund basis financial statements. Answer: False 10. With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues and expenditures combined are at least 10% of the total for the governmental funds category. Answer: False 11. With respect to fund basis financial statements, a government may only designate a fund to be a major fund if it meets the size thresholds established by GASB. Answer: False 12. With respect to fund basis...

Words: 8043 - Pages: 33

Premium Essay

“Why Governmental Accounting and Financial Reporting Is—and Should Be—Different”

...“Why Governmental Accounting and Financial Reporting is—And Should Be—Different” The paper “Why Governmental Accounting and Financial Reporting is—And Should Be—Different” compares governmental accounting and financial reporting to that of the approach used in for-profit business enterprises. It also states specific reasons why governments should be different. There are environmental differences between governments and businesses that call for a different approach. First, governments have different purposes for their operations. For-profit entities strive to create wealth and to meet return on investment goals. While governments on the other hand are actually trying to enhance or maintain quality of life with services that are dictated by public policy goals. They also must consider efficiency, effectiveness, and economy when they evaluate public policy. Secondly, governments and for-profit business entities differ in the way they generate revenue. Governments generate income through involuntary taxes. Customers of for-profit business entities have a choice of what services they purchase and where they buy. The same does not apply for the governmental customer. The users of their reports also differ. Citizens and their elected representatives are users of government reports. They are as interested in the “why” as they are the “how much” when they read a financial report. They use governmental financial reporting to support their discussions of public policy such as what...

Words: 383 - Pages: 2

Free Essay

Comparison on Bc and Alberta Post Secondary Reporting

...During the period between planning and accountability reporting, the Ministry portfolio in both provinces changed slightly, however, advanced education and training remained the primary focus of the Ministry in both provinces. In 2012 – planning year for 2012-2013 - post-secondary education fell under the BC Ministry of Advanced Education, which changed to the Ministry of Advanced Education, Innovation and Technology by the time the results were reported in 2012-2013. In Alberta, during the planning part of the accountability cycle in 2012, post-secondary education was the responsibility of the Ministry of Advanced Education and Technology but changed slightly to be the Ministry of Advanced Education and Enterprise by the reporting time in 2013. In all cases, the Ministries had the responsibility for the oversight of the publically funded universities and other post-secondary institutes within their respective provinces. Since the portfolios changed slightly from planning to reporting, I focused only on the post-secondary objectives, measures, and results. Overview: While the governments of the day in BC and Alberta are politically not that similar, they both have well developed planning and reporting processes. As a result, both Ministries that I reviewed scored high in many of the categories. Based on the information available on the government websites, this maturity in process is evident across the government as a whole and not...

Words: 3968 - Pages: 16

Premium Essay

Environmental Accounting- Significance of the Problem

...Significance of the Study These are the following individuals or institutions that will benefit from the findings of the study: Government. This study will provide a basis on making or improving government policies, rules and regulations regarding accounting for negative externalities in the Philippines. Since climate change is a global issue, the government of the Philippines is in need to intervene with institutions or companies that contribute to it. For the local government of Misamis Oriental, this study will help them on having a good picture on what is the accounting practice related to negative externalities of the companies located within the premises. This will help them on deciding to issue a local provisions or city ordinance and implementations in dealing with the current matter. The Society. The society can derive benefits from this study because whatever rules and policies that the government issues, they will be the end recipient. Sustainable developments by companies will also have a great impact on the society particularly on the regulation of activities that will mitigate the negative impact on the environment. Thus, they are able to lessen the burden in paying alone the consequences of the negative externalities emitted by companies. Academe. This particular institution will be benefited by making this study as one of the references in promoting sustainable responsibility to the students of their respective field. As moulder of the future accountants...

Words: 318 - Pages: 2

Premium Essay

Corporate Governance

...and made known to the public the corruptions of government officials, Manuel is not working as an auditor for the government anymore. As an auditor, he performed his responsibility of auditing the government funds and reporting his findings with evidences that proved his discoveries which he did not try to conceal. His liability is limited to reporting the result of the audit engagement--embezzlement of government funds. The burden of proof rests in the confines of the whistle blower’s knowledge of the matters concerning the accusations. 2. If the accusations will pursue to judicial proceedings, should Manuel stand as a witness in the said proceedings? Morally, Manuel Dolorica should stand as a witness if the accusations will pursue to judicial proceedings. Being the son of Sgt. Arturo Dolorica who was a man of principle, he was taught to not deceive his fellow men, always stand for the truth and always abide by the principle that is for the common good. 3. Was resigning from the Ministry of Audit the right way or decision he had to make? If not, what is supposed to be the action he had done during that time? No, resigning from the Ministry of Audit was not the right thing to do. He should have reported to his immediate superior who maybe a commissioner of audit. If not, he could have reported to the National Bureau of Investigation, the Ombudsman, or the Department of Justice since the highest position in the government was being held by a person involved in the anomaly...

Words: 339 - Pages: 2

Premium Essay

Student

...qualify as separate governments.” As can be seen from this definition a special district is a type of special purpose government. A primary government is broader in scope than a special district. According to GASB a primary government can be a state government, a general purpose government, or a special purpose government. To qualify as a primary government, GASB indicates a special purpose government needs to have a separately elected governing body, and be legally separate and fiscally independent of state or local governments. This definition is similar to the definition provided by the Bureau of Census for a special district. Therefore, a special district could be considered a type of primary government. 9-2. The letter of transmittal generally cites legal and policy requirements for the report. It can also provide information on factors relating to government services and operations. Since the transmittal letter is generally not a part of the audit, it can include somewhat subjective information. On the other hand, the MD&A is considered required supplementary information (RSI) subject to review by the auditor. As such, the MD&A can only contain material set out by the GASB standards. Some of the information required to be included in the MD&A is an overview of financial activity for the year, explanation of the contents of the CAFR, and a description of the financial condition and financial trends of the government. ...

Words: 744 - Pages: 3

Premium Essay

Non for Profit Chapter 1 Answers

...g., a municipal electric utility, the accounting largely parallels that for a similar private business (e.g., electric utility). b. Among the unique aspects of G&NP organization accounting are: 1. Fund accounting—designed to separate resources according to the purposes for which they may be used and to account for their uses and balances. 2. Budgetary control techniques—to help assure appropriations are not overexpended and all resources due the G&NP organization are received by it. Question 1-2 a. A fund of a government organization is an independent fiscal and accounting entity. Each fund has a separate self-balancing set of accounts in which are recorded the resources segregated for specific purposes, the related liabilities and residual equity (fund balance or net assets), and the changes therein. Financial statements typically must be presented to report the financial position and operating activities of a fund of a government. b. As the term is generally used in commercial accounting, a "fund" merely indicates that a portion of an organization's assets is set aside and/or restricted to certain uses, e.g., a petty cash fund or a bond sinking fund. Such "funds" are not separate accounting entities, but are accounted for by establishing appropriately titled asset and liability accounts within the organization's general ledger. c. No, the creation of a fund does not constitute authority to spend or obligate its...

Words: 2546 - Pages: 11

Premium Essay

Freedom of Press

...must not fail to follow its code of conduct and misuse the freedom. The press plays a very positive and constructive role in a democracy. It keeps the people informed of the national and international news and happenings. It brings to the notice of people the programmes, policies and activities of the government. Similarly, it keeps the Government in the know of the people’s problems, difficulties, hopes and aspirations. Thus the press plays a dual role. It serves as a bridge between the Government on the one hand and the people on the other. Of course, the role of the press cannot be minimized even in a dictatorship, because a dictator also needs the press for reflecting his ideology and policies. A dictator uses the press to prop up his image by highlighting his achievements. But in this case the press gives very little feedback to the dictator. Another crucial difference between the press in a democracy and the press in a dictatorship is that while the press in a democracy is free, frank and fearless, the press in a dictatorship is subservient to the whims and fancies of the dictator. It does not enjoy freedom of expression. The primary duty of the press is objective reporting of the news and views in a calm and dispassionate manner. Sometimes certain newspapers indulge in ‘Yellow Journalism.” They give out biased and coloured news. Their aim is simply to indulge in sensationalism. Sometimes they also spread rumours. They go to the extent of indulging...

Words: 601 - Pages: 3

Premium Essay

Acc 380 Week 2 Assignment

...Article Statement No. 49 Before diving directly into the article from the Governmental Accounting Standards Board (GASB) titled Governments to Report Liabilities Connected with Their Obligations to Clean Up Pollution (2006), one must first take a step back and take time to read, comprehend, and take to heart exactly what this organization stands for. Taken directly from their main web page under the tab labeled Education, the first thing seen in big, bold, blue letters is, “Due Process: The GASB Is Listening” followed by a definition of what listening means, “to hear with thoughtful attention”. When researching a little more into the GASB, it is easy to see how crucial listening truly is for them in order to fully accomplish their mission, which is basically to fully, and carefully consider all issues in regards to the protection of their constituents. Now that the GASB has been explained a little which providing an understanding of the position of the GASB, it is, at this point, appropriate to explain the details and specifics of the of the aforementioned article. The article discusses the apparent need for stricter regulations for state and local governments in regards to reporting and estimating the treatment of pollution and its costs; the article stated that as of December 2006, there is not a specific set of guidance set up for governments to utilize, stating that is the source of a lot of issues (para. 1). Since the need is quite indubitable, and the main concern for...

Words: 1049 - Pages: 5

Free Essay

Government Accounting Chapter 1

... 1. Which of the following would not be considered a government or nonprofit organization? A. A software company that sells software exclusively to state and local governments. B. A public elementary school. C. A church. D. A private trust organized for charitable purposes. (Answer: A; Easy; LO1) 2. Which of the following activities would most likely be accounted for as a business-type activity? A. Fire protection. B. Recreation. C. Water operations. D. Street maintenance. (Answer: C; Moderate; LO1) 3. Prior to the creation of the Governmental Accounting Standards Board in 1984, which of the following organizations had the greatest influence over accounting concepts, principles, and standards for the state and local governments? A. The National Council on Governmental Accounting (NCGA) B. The National Association of College and University Business Officers (NACUBO). C. The American Institute of Certified Public Accountants (AICPA). D. The Comptroller General of the United States. (Answer: A; Moderate; LO1) 4. Which of the following is considered a health and welfare organization? A. Secondary schools. B. Young Men’s Christian Association (YMCA). C. Child protection agencies. D. United Way. (Answer: C; Easy; LO2) 5. Which of the following characteristics best distinguishes a government entity from a business entity? A. Governments operate in a very small section of the economy while...

Words: 1569 - Pages: 7

Premium Essay

Accountability in Reporting Memo

...Memorandum To: CC: From: Stephanie Copenhaver Date: 7/6/2015 Re: Accountability in Reporting Memo To whom it may concern: This memorandum is going to explain how increasing scrutiny and demand for accountability by the public has influenced reporting for not-for-profit and government entities. First, it must be understood on where the money is coming in from to these types of entities. The not-for –profit sector receives money from the government, pledges, contributions and donations. The government receives money from taxpaying citizens and may be financed through bills or laws passed through Congress and the Senate. In order to maintain integrity with these entities, the people that the money comes from need to know where their hard -earned money is going. There have been at least two boards set up: the Governmental Accounting Standards board and the Financial Accounting Stand Board. These boards have installed several statements of standards that tell what type of items needs to be reported. They also set the standard on how to report these financial statements. These recommendations have come down from audiences such as the one reading this memorandum, the nonfinancial audience. The boards mentioned above are reviewing audit reports that receive federal grants and donations. This is to make sure independent audit firms are in compliance with all regulations. Another thing that has come down from the nonfinancial audience...

Words: 617 - Pages: 3

Free Essay

Accountability

...IMPORTANT OF ACCOUNTABILITY Accountability is very important as a perception in ethical and good governance of Malaysia local governments. Malaysia governments has put big effort in enhancing the level of quality of accountability of it servant through many action and initiatives. But, there still have the lack of accountability remains a thorny issues and keeps on being raised in Auditor General Report and Medias. The concern of weaknesses in administration and need to strengthen accountability led to the expansion of the Auditor General’s powers to include management audits. Accountability is meant not merely to control the exercise of public authority and resource employed but also to promote and enhance the public sector performance. The implementation of performance measurement is one of the efforts taken by the public sector organizations to enhance their accountability. In other word, managing and measuring performances has been one of the key drivers in reform of the public sector in recent years, as it becomes an important tool to increase accountability. The performance measurement and accountability are very much influenced by financial reporting of any organization, which could also be as performance information. The meaning of accountability is very broad which affects on all features of government operations. Over the past decade, awareness and concern among the public have raised towards the accountability of the public sectors. It is noted that the...

Words: 266 - Pages: 2

Free Essay

Roles for Gasb and Fasb

...accounting of state and local governments by determining what pieces of data are necessary to provide useful information to citizens. FASB creates standards for all business and government entities to follow. GASB monitors government entities and sets the standards for local and state governments, while FASB works to help investors and creditors make decisions from the rules regulating the accounting standards of private entities. GASB helps to identify how accounting should be handled for receipts of funds that come from donations, grants, penalties, fines, and taxes. Funds received through business practices would need to be classified under GASB and FASB in government sectors, but if in a private entity it is only required to follow FASB. There are many differences between the GASB and the FASB as to which statements must be used, and for what reasons. As for the GASB a statement of net assets is used in exchange for the FASB’s balance sheet. A similar report called the statement of financial position is available for use by FASB but is not required. Net assets can be recognized under FASB as unrestricted, temporarily restricted, or permanently restricted, while GASB also uses unrestricted and “restricted or invested in capital assets, net of related debt” (GASB). The two boards work hand in hand to make sure that rules are established and updated and standardized for business, government, and non-profits. They also ensure that they are reporting appropriately for the protection...

Words: 914 - Pages: 4

Premium Essay

Comparitive Paper

...Comparing the Financial Environments Yvonne Young Tricia Jenkins HCS/577 July 20 2015 Comparative Summary For Profit Organization, Not for Profit Organization, Government Organization Home Health Doctors without Borders, World Health Organization Financial structure * For profit organization (Home Health) 1. Combining profitable business with meaningful opportunities helping clients maintain quality of life. Contribution of staff and how well the operation of business is performed and the efficiency, and the effectiveness of services needed to patients reliability of assistance and their autonomy. 2. Announcing budget by identifying the employees receiving budget information determine employees such as managers to be aware of budget announcement choosing dates for groups to receive budgetary information. 3. Write overview of the budget illustrating Major changes from previous budget Incorporate a list of action points needed to perform 4. Compile a packet for employees including Action list Budget 5. Send out emails notifications and memos based on the home health organization announcing the release of budget information 6. Gather for meeting with employees dispersing information and schedule accordingly. * Not for Profit Organization (Doctors without Borders) 1. Fundraising and administrative cost with independency of growth through individuals and investments...

Words: 608 - Pages: 3