Government &nonprofit Flashcards
FASAB
Federal Accounting Standards Advisory Board
GASB
Governmental Accounting Standards
FASB
Financial Accounting Standards Board
Board for State and Local governments
GASB
Board for federal government
FASAB
Board for private sector (not-for-profits)
FASB
Governments and not for profits are governed mainly by their
budgets
Most important report for government and not for profit
budget
constituents pay for the services that they receive and do no shift the burdens to their children
Intergenerational equity
entities should not transfer the costs even to future years, to say nothing of future generations
interperiod equity
governments and not for profits use what system of accounting
fund accounting
village, town, or city
municipality
cornerstone of financial reporting
accountability
financial reporting should show whether current-year citizens shifted part of the services they received to future-year taxpayers.
interperiod equity
should demonstrate whether resources wer obtained and used in accourdance with the legally adopted budget, and compliance with other finance-related legal or contractual requirements
budgetary and fiscal compliance
assist users in assing the service efforts costs and accomplishments of the governmental entity
service efforts costs and accomplishments
Overall purposes of financial reporting
assess financial condition
compare actual results with the budget
Determine compliance with appropriate laws, regualtions, and restrictions on use of the funds
Evaluate efficiency and effectiveness
Gasb additional objectives of finacial reporting
financial reporting should assist users in evaluating the operating results of the governmental entity for the year
Financial reporting should assist users in assessing the level of services that can be provided by the governmental entity and its ability to meet its obligations as they become due.
Generally accepted accounting principles
GAAP
American Institue of Certified Public Accountants
AICPA
fiscal compliance
entity has acted in accord with budgetary mandates, has adhered to the provisions of grants and contracts, and has complied with all applicable laws and regulations. (reporting by fund, accounting for encumbrances, required actual-to-budget comparisions)
