Lisandra Rodriguez Acc.410
HW#1 Chapter 1
Funds are separate fiscal and accounting entities and include both cash and non cash resources. There are two types of fund accounting entities expendable and nonexpendable funds. Like that on business accounting is expenses – the cost of assets consumed during the period. In contrast, the cost of measurement focus of expendable fund accounting is expenditures – the amount of financial resources expended during the period for.
The GASB is responsible for establishing accounting and financial reporting standards for activities and transactions of state and local governments including government non-profit organizations. Meanwhile FASB is for all other organizations including nongovernment nonprofit organizations. Then we have AICPA that evaluates the pronouncements of the various G&NP accounting standards bodies in depth in the course of preparing a series audit guidelines.
Because significant revenues from sales of services are not available to finance governmental type activities, the government must raise financial resources from other sources such as Taxation and intergovernmental revenues. These are the two primary examples of these revenues.
Because the day to day accounting and interim reporting by G&NP organizations is often based on cash receipts, disbursements, and balances or assuring compliance with the organization’s budget. But their annual financial statements must meet uniform national standards if they are to comply with GAAP.
Lisandra Rodriguez ACC410
HW#1 Chapter 1
The purpose of the AICPA GAAP hierarchy guidelines is assist practitioners in determine which authoritative financial reporting standards or other guidance should be considered in determining what constitutes GAAP and their relative status or ranking. The practitioner should also…...