...Introduction to Accounting and Financial Reporting for Governmental and Not-for-Profit Entities True / False Questions 1. Special purpose governments generally provide a wider range of services to their residents than do general purpose governments. True False 2. Examples of general purpose governments include cities, towns, and public schools that receive tax revenue to finance the services they provide. True False 3. The Governmental Accounting Standards Board (GASB) is the body authorized to establish accounting principles for all state and local governments, both general purpose and special purpose. True False 4. The Governmental Accounting Standards Board (GASB) is the body authorized to establish accounting principles for all government entities. True False 5. The Financial Accounting Standards Board (FASB) is the body authorized to establish accounting principles for all colleges and universities and health care entities. True False 6. Neither governmental nor not-for-profit entities have residual equity that can be distributed to owners. True False 7. A characteristic common to governmental and not-for-profit organizations is that they do not exist to provide goods or services at a profit or profit equivalent. True False 8. The needs of users of government financial reports are the same as those of users of business entity financial reports. True False 9. The Federal Accounting Standards...
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...ACC 430 Governmental Accounting (Online) Chapter 1 Questions 1-2. Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Board’s Why Governmental Accounting and Financial Reporting Is-and Should be-Different. 1. Organizational Purposes-A governments organizational purpose is to provide public services for the well-being of citizens regardless of profit. Whereas a for-profit business’s organizational purpose is to generate a profit for the owner while providing services to the public. 2. Sources of Revenues-A for-profit business’s source of revenue is its net income (total revenues (sales)-total expenses). A government’s source of revenue is mainly from taxes. 3. Potential for Longevity-State and local governments rarely go out of business, because they are given the ability to tax. For this reason, governments view accounting operations on a long-term basis instead of short-term. Governments focus on maintaining services and how to meet future demands. 4. Relationship with Stakeholders-Since a Governments main source of revenue is taxes, which are paid by citizens; they are required to account for these public funds. Whereas a business can use its resources as it chooses. 5. Role of Budget-Business’s prepare a budget for planning and control purposes and are normally not provided to creditors or investors. Governments on the other...
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...Government and Non-Profit Accounting )Complete Class Click This Link to Get The Tutorial: http://www.myhomeworkspot.com/ACC455-Corporate-Taxation-Complete-Class-002.htm Week 1 Individual Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis Paper Prepare a 350- to 700-word paper comparing and contrasting GASB and FASB accounting. Explain the objectives of the two standards boards and how they are similar and different. Describe how the modified accrual basis of accounting differs from full accrual accounting. Format your paper consistent with APA guidelines. Discussion Questions DQ 1 Log into http://www.charitynavigator.org/. Choose a good charity and a bad charity and explain why you feel they should labeled good or bad. DQ 2 What is fund accounting? How does it compare to proprietary accounting? Why is fund accounting necessary? What are the major fund types? DQ 3 What are some examples of government and not-for-profit organizations? How do businesses measure success? How do government organizations measure success? DQ 4 What is the purpose of CAFR? What are the components of CAFR? Why is the Federal Government not subject to GASB 34? How do government-wide financial statements add information not available in fund financial statements? Week 2 Individual Ch. 1, 2, & 3 Textbook Exercises Resources: Ch. 1, 2, & 3 of Government and Not-for-Profit Accounting Prepare written answers...
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...GASB and FASB Analysis Paper ACC/460 The Governmental Accounting Standards Board and the Financial Accounting Standards Boards were put in place to assist in regulating the private sector, federal, and state and local governments. These regulations that are in place are to hold he sector accountable for its accurate financial reporting and documentation. I ask how these two divisions differ in its objectives and how to they regulate each party it governs. The Governmental Accounting Standards Board oversees the federal, state, and local governments with the basis of accountability. With that the GASB holds the government accountable to the citizens it represents. This means the government entities must show its constituents the money being raised is going to exactly what it was claimed for. An example of this would be a raise in taxes to assist in making gasoline safer for the environment. The GASB has broken down this accountability into three sub-objectives, the first is interperiod equity. Interperiod equity is a means of financial reporting that determines if there is enough current year money to pay for the current year needs. It also explains whether or not individuals in need of certain governmental services were pushed to the taxpayers. The second sub-objective is budgetary and fiscal compliance meaning that this reporting explains where funds came from to take care of services needed by the citizens. The third and final us service effort costs and accomplishments...
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...identified in the Governmental Accounting Standards Board's Why Governmental Accounting and Financial Reporting Is—and Should Be—Different. The five environmental differences include mission/purpose, source of revenue, potential longevity, relationship with stakeholders, and role of budget. The mission/purpose is defined by the goals of the organization. The purpose of a commercial business is to make money. A non-profit organization’s purpose is to provide a service, without compensation from the people being served. The source of revenue comes from net income, which comes from a sale of goods or services in the private sector or in the public sector comes from tax dollars or donations. The longevity potential for a private business depends on the ability to generate a profit. In contrast a non-profit relies upon tax dollars or donations. The stakeholders of a private corporation are the owners/stockholder/investors. The stakeholders of a public organization are the taxpayers and general public being served. The budget in the private sector is flexible, depending on revenues and directors. The budget within a public organization is typically not flexible and has to be followed exactly. 1-3. Identify and briefly describe the three organizations that set standards for state and local governments, the federal government, and nongovernmental not-for-profit organizations. FASAB: Federal Accounting Standards Advisory Board provides accounting standards for congressional...
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...Why Government Accounting and Financial Reposting is - and Should be-Different. Government and Business Enterprises environments differs. The environment differences between them are organization purposes, process of generating revenue, relationship with stakeholders, budgetary obligation and potential for longevity. Due to these environmental differences the need for their accounting and financial reporting users differs too. The accounting and financial reporting standards for government and business enterprises need to focus and meet the requirements of their stakeholder’s needs. The stakeholders for the business enterprises financial reports are creditors, Equity Investors and their regulators who can use financial reports to make decision on whether to invest or not on those business and creditor whether to borrow them or not .The stakeholders for the Government are creditors and citizens who are primarily the resources provider though taxes, who need assess the government accountability in how public resources were acquired and used so as to make political, social and economic decisions. Creditors generally they look for the assurance if there will be sufficient fund to repay debt. In Business enterprises they seek the how the earnings are generated while in the government they seek information about the ability and willingness to correct taxes and generate other revenue to debt repayment. Major environmental Differences between Government and Business are described...
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...UNIVERSITY Use of Theses This copy is the property of the Edith Cowan University. However the literary rights of the author must also be respected. If any passage from this thesis is quoted or closely paraphrased in a paper or written work prepared by the user, the source of the passage must be acknowledged in the work. If the use desires to publish a paper or written work containing passages copied or closely paraphrased from this thesis, which passages would in total constitute an infringing copy for the purposes of the Copyright Act, he or she must first obtain the written permission of the author to do so. USERS AND ACCOUNTING INFORMATION PREFERENCES OF GOVERNMENT DEPARTMENT FINANCIAL REPORTS by Helen R Mignot B (Bus) A thesis submitted in partial fulfilment of the requirements for the award of Master of Business (Accounting) at the Faculty of Business Edith Cowan University Date of Submission: 05 February 1996 ACKNOWLEDGMENTS AND DEDICATION I wish to thank all those who provided...
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...for-profit business enterprises as identified in the Governmental Accounting Standards Board’s Why Governmental Accounting and Financial Reporting Is—and Should Be—Different. 1–3 Identify and briefly describe the three organizations that set standards for state and local governments, the federal government, and nongovernmental not- for-profit organizations. 1–4 What is the definition of a government as agreed upon by the FASB and GASB? 1–5 Describe the “hierarchy of GAAP” for state and local governments, the federal government, and nongovernmental not-for-profit organizations. 1–6 Accounting and financial reporting for state and local governments use, in different places, either the economic resources measurement focus and the accrual basis of accounting or the current financial resources measurement focus and the modified accrual basis of accounting. Discuss the differences in measurement focus and basis of accounting related to ( a ) the conceptual differences, ( b ) differences in revenue recognition, ( c ) differences in expense/ expenditure recognition, ( d ) differences in recognition of fixed assets, and ( e ) differences in the recording of long-term debt. 1–7 Distinguish between private and public sector organization. 1–8 GASB considers budgetary accounting and reporting to be important. List the principles outlined by GASB related to budgetary accounting and reporting. 1–9 Go to the GASB website (www.gasb.org). What is...
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...governments is that businesses have profit as their main motive whereas the others have service. A primary purpose of financial reporting is to report on an entity’s accomplishments — how well it achieved its objectives. Accordingly, the financial statements of businesses measure profitability, their key objective. Financial reports of governments and other not-for-profits should not focus on profitability, since it is not a relevant objective. Ideally, therefore, they should focus on other performance objectives, such as how well the organizations met their service goals. In reality, however, the goal of reporting on how well they have achieved such goals has proven difficult to attain and the financial reports have focused mainly on financially-related data. 2. Governments and not-for-profits are “governed” by the budget, whereas businesses are governed by the marketplace. The budget is the key political and fiscal document of governments and not-for-profits. It determines how an entity obtains its resources and how it allocates them. It encapsulates most key decisions of consequence made by the organization. In a government the budget is not merely a managerial document; it is the law. 3. Owing to the significance of the budget, constituents want assurance that the entity achieves its revenue estimates and complies with its spending mandates. They expect the financial statements to report on how the budget was administered. 4. Interperiod equity is the concept that taxpayers...
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...ACCT 567 Funds, Statements, Taxes, Accounting for Government and NFP Keller PLEASE DOWNLOAD HERE! HTTP://WWW.STUDENTSWITHSOLUTIONS.COM/VIEW-TUTORIAL.ASPX?TUTORIALID=14604 ACCT 567 Funds, Statements, Taxes, Accounting for Government and NFP Keller 1. Explain the primary differences between ad valorem taxes, such as property taxes, and other taxes that generate derived tax revenues, such as sales and income taxes. How does accounting differ between these classes of taxes? http://www.studentswithsolutions.com/view-tutorial.aspx?TutorialId=14555 2. Can you name the statements which should be prepared by all not-for-profit organizations? http://www.studentswithsolutions.com/view-tutorial.aspx?TutorialId=14558 3. Name a budgetary account of a governmental fund http://www.studentswithsolutions.com/view-tutorial.aspx?TutorialId=14559 4. How are the major funds of a state or local government determined by a governmental entity? http://www.studentswithsolutions.com/view-tutorial.aspx?TutorialId=14556 5. Agency funds pay interest and principal on long term debt? http://www.studentswithsolutions.com/view-tutorial.aspx?TutorialId=14557 6. A refuse collection service can be accounted for by using one of several different funds. The service could be a part of the general fund, it could be a special revenue fund or an enterprise fund. What circumstances would determine which fund would be the most appropriate to use? http://www.studentswithsolutions...
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...CHAPTER 1 Financial Accounting and Accounting Standards ASSIGNMENT CLASSIFICATION TABLE Topics 1. 2. 3. Subject matter of accounting. Environment of accounting. Role of principles, objectives, standards, and accounting theory. Historical development of accounting standards. Authoritative pronouncements and standards-setting bodies. Questions 1 2, 3, 4 5, 6, 7, 8 Cases 1 3, 4 2, 4 4. 8, 9, 10, 11, 12 5, 17 5. 13, 14, 15, 16, 17, 18, 19, 20, 21, 22 23, 24, 25, 26, 27 28 29 6, 7, 8, 10, 11, 12, 13, 15, 16 6. 7. 8. Role of pressure groups. International accounting. Ethical issues. 9, 18, 19 15 14 1-1 ASSIGNMENT CHARACTERISTICS TABLE Item C1-1 C1-2 C1-3 C1-4 C1-5 C1-6 C1-7 C1-8 C1-9 C1-10 C1-11 C1-12 C1-13 C1-14 C1-15 C1-16 C1-17 C1-18 C1-19 Description Financial accounting. Objectives of financial reporting. Accounting numbers and the environment. Need for accounting standards. AICPA’s role in standards setting. FASB role in standards setting. Government role in standards setting. Meaning of generally accepted accounting principles. Politicalization of standards setting. Models for setting accounting standards. Standards-setting terminology. Accounting organizations and documents issued. Accounting pronouncements. Issues involving standards setting. Securities and Exchange Commission. Standards-setting process. History of standards-setting organizations. Economic Consequences. Standards-setting process, economic consequences. Level of Difficulty...
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...confidence" on the part of the public in the accounting profession. List the parties who you believe were most responsible for that crisis. Briefly justify each of your choices. - SEC. Failed enforcement - Andersen firm. Fixed financial statements. - Corporate executives. Fraud financial reporting. - Auditors and lawyers who failed make the right decision. 2. List three types of consulting services that audit firms are not prohibited from providing to clients that are public companies. For each item, indicate the specific threats, if any, that the provision of the given service could pose for an audit firms's independence. • Services related to accounting entries. Bookkeeping and/or financial statements of the client. • Advising on financial information system would make audit firm to question the system used by a client. • Advising on management/human resources hire resources. • Investment broker adviser. • “Expert” Advising not based on audit. 3. For purposes of this question, assume that the excerpts from the Power Report shown in Exhibit 3 provide accurate descriptions of Andersen's involvement in Enron's accounting and financial reporting decisions. Given this assumption, do you believe that Andersen's involvement in those decisions violated any professional standards? If so, list those standards and briefly explain your rationale. Independence. Andersen failed to report accounting/financial statements accurately. Reporting. There were no disclaimer of opinion...
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...ACCOUNTING 5336 Ch4 – Reading Questions – Spring 2012 Recognizing Revenues in Governmental Funds Ch 4a (pp 130-151) 1. The current model for governmental reporting requires two sets of financial statements. What are they? What key reporting objective does each meet? What basis of accounting does each use? (p131) Government-wide statements: full accrual and consolidate all funds. Indicating the extent to which the entity achieved interperiod equity (Demonstrates whether the entity’s current-year revenues were sufficient to pay for the current year’s services.) Fund statements: governmental funds on modified accrual basis. Demonstrating whether the entity obtained and used its resources in accordance with its legally adopted budget. 2. Why didn’t GASB just require governments to use their budgetary basis for financial reporting? (p132) Because retaining the modified accrual basis ensures that all governments report on the same basis and thereby facilitates comparisons among entities. Comparisons would have been difficult if each reported on its own particular budget basis. 3. Current financial resources (the measurement focus used with modified accrual) can be described as “expendable financial resources”. What does this mean? (132-3) This is cash and other items that can be expected to be transformed into cash in the normal course of operations (less current liabilities). Other items include investments and receivables but...
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...Introduction Reporting standards for public and privately held companies, presently up for debate as specific standards of disclosure for each type of business differ. Even though the understanding of full disclosure requirements for the user required by publically held companies, the question of full disclosure for privately held companies still lingers. When it comes to financial reporting and the regulations that govern the reports, all companies should report in the same manner, including total disclosure. This paper will focus on one set of GAAP standards utilized for all companies regardless of whether they are public or private. Throughout this paper, we will explore the aspects of why it would be cost effective for all organizations to report with one GAAP standard, consistency in reporting, and the importance of less confusion (relevance versus reliable) by utilizing one set of standard for both public and private companies, rather than the creation of separate standards. Cost Effectiveness The adoption of one GAAP set of standards for public and private companies still remains supported by several accounting groups. A modification created by the GAAP for private companies, this could lead to changes in the disclosure, presentation, and recognition standards. According to California CPA Education Foundation, “Cost has been one of the main issues for proponents of modifying the standards for private companies.” The panel has discovered that it is very difficult...
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...Accounting Standards Board Paper Financial Accounting Standard Board (FASB) is a private, not-for-profit organization responsible for setting accounting standard for public companies in the United States. It was created in 1973 as a replacement for the Committee on Accounting (CAP) and the Accounting Principle Board (APB). Financial Accounting Standard Board mission is stated as “to establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities that provides decision-useful information to investor and other users of financial reports.” The International Accounting Standard Board (IASB) is an independent, privately funded accounting standard-setter based out of England. It replaces the International Accounting Standard Committee and was founded April 1, 2001. International Accounting Standard Board is responsible for development and publication of International Financial Reporting Standard (IFRS). The International Accounting Standard Board mission is to converged global accounting standard; develop a single set of high quality, understandable, and enforceable global accounting standards; provide high quality transparent and comparable information in financial statement and help the world’s capital market and other financial statement user make sound economic decision. Since more companies are doing business and seeking financing from outside their home countries, investors from other countries are now reading...
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