Chap001 - CHAPTER 1: FINANCIAL REPORTING FOR GOVERNMENTAL...

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Unformatted text preview: CHAPTER 1: FINANCIAL REPORTING FOR GOVERNMENTAL AND NOT-FOR-PROFIT ENTITIES OUTLINE Number Topic Type/Task Status (re: 12/e) Questions: 1-1 Distinguishing characteristics of GNP entities Describe 1-2 revised 1-2 Standards-setting bodies Contrast 1-3 revised 1-3 Objectives of financial reporting Defend New 1-4 Accountability Explain New 1-5 GAAP Explain New 1-6 GASBS 34 Explain New 1-7 Comprehensive annual financial report Explain New 1-8 Government-wide financial statements Describe New 1-9 Fund financial statements Describe New 1-10 Measurement focus and basis of accounting Describe New Cases: 1-1 Research CaseGovt. or N-F-P entity? Written report Revised 1-2 Internet CaseGFOA Written report New 1-3 Internet CaseGASB Internet Revised Exercises/Problems: 1-1 Examine the CAFR Examine Revised 1-2 Various Multiple Choice New 11 CHAPTER 1: FINANCIAL REPORTING FOR GOVERNMENTAL AND NOT-FOR-PROFIT ENTITIES Answers to Questions 1-1. The major characteristics that distinguish governmental and not-for-profit entities from business enterprises include: a. Receipts of significant amounts of resources from resource providers who do not expect to receive either repayment or economic benefits proportionate to the resources provided. b. Operating purposes that are other than to provide goods or services at a profit or profit equivalent. c. Absence of defined ownership interests that can be sold, transferred, or redeemed, or that convey entitlement to a share of residual distribution of resources in the event of liquidation of the organization. Governments and not-for-profit organizations are accountable to resources providers who do not get proportionate value in exchange for the taxes or contributions they make to the organization. Consequently, they report on both fiscal accountability for spending within the legally approved budget and accountability for the operations of the government as a whole. Not-for-profit organizations report on the net assets of the organization and changes in those net assets, much like a business, but recognize that donors and consumers of the services are primary users of the financial statements, not taxpayers or owners. 1-2. Illustration 1-1 depicts the standards-setting jurisdiction of the FASB, GASB and FASAB. As shown, the FASB has responsibility for setting accounting and financial reporting standards for business enterprises and nongovernmental not-for-profit organizations. The GASB has responsibility for setting standards for state and local governments and governmental not-for-profit organizations. The FASAB has responsibility for setting accounting and reporting standards for federal agencies and departments....
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Chap001 - CHAPTER 1: FINANCIAL REPORTING FOR GOVERNMENTAL...

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