What financial statements are required for government accounting?

Required governmental fund statements are a balance sheet and a statement of revenues, expenditures, and changes in fund balances. Required proprietary fund statements are a statement of net assets; a statement of revenues, expenses, and changes in fund net assets; and a statement of cash flows.

What accounting standards does the federal government use?

Since October 1999, the American Institute of Certified Public Accountants (AICPA) has recognized the Federal Accounting Standards Advisory Board (FASAB) as the standard-setting body for federal governmental entities; therefore, the pronouncements resulting from the FASAB process represent generally accepted accounting

What type of accounting principle is followed in government?

Consistency in financial reporting by governments is provided through accounting standards. GASB is the standard-setting authority of generally accepted accounting principles (GAAP) for state and local governments, including school districts.

Does the government have a balance sheet?

The Balance Sheets show the government’s assets, liabilities, and net position. When combined with stewardship information, this information presents a more comprehensive understanding of the government’s financial position. The net position for funds from dedicated collections is shown separately.

What are the 5 types of governmental funds?

According to the GAAFR (the Blue Book), governmental funds are “used to account for activities primarily supported by taxes, grants, and similar revenue sources.” Within the category of Governmental Funds, there are five types: General Fund, special revenue funds, debt service funds, capital projects funds, and

Does the government follow GAAP?

Every state in the U.S. follows GAAP. Some states also require governments within their borders to follow GAAP. For example: Roughly half of the states require all of their counties to follow GAAP and a few require it only for their largest counties.

Does the government use GAAP?

The Governmental Accounting Standards Board (GASB) is the source of generally accepted accounting principles (GAAP) used by state and local governments in the United States. As with most of the entities involved in creating GAAP in the United States, it is a private, non-governmental organization.

What does GAAP stand for?

The standards are known collectively as Generally Accepted Accounting Principles —or GAAP. For all organizations, GAAP is based on established concepts, objectives, standards and conventions that have evolved over time to guide how financial statements are prepared and presented.

What are the 7 accounting principles?

Basic accounting principles

• Accrual principle.
• Conservatism principle.
• Consistency principle.
• Cost principle.
• Economic entity principle.
• Full disclosure principle.
• Going concern principle.
• Matching principle.

What are the 10 accounting concepts?

: Business Entity, Money Measurement, Going Concern, Accounting Period, Cost Concept, Duality Aspect concept, Realisation Concept, Accrual Concept and Matching Concept.

What are the 10 principles of accounting?

The best way to understand the GAAP requirements is to look at the ten principles of accounting.

1. Economic Entity Principle.
2. Monetary Unit Principle.
3. Time Period Principle.
4. Cost Principle.
5. Full Disclosure Principle.
6. Going Concern Principle.
7. Matching Principle.
8. Revenue Recognition Principle.

What are the 12 accounting standards?

Accounting Standard 12 deals with the accounting for government grants. Such grants are offered by the government, government agencies and similar bodies including local, national or international. These government grants are sometimes referred to as subsidies, cash incentives, duty drawbacks etc.

What is full form IFRS?

International Financial Reporting Standards (IFRS) are a set of accounting rules for the financial statements of public companies that are intended to make them consistent, transparent, and easily comparable around the world. The IFRS are issued by the International Accounting Standards Board (IASB).

What are the two accounting standards?

The two most influential bodies when it comes to setting accounting standards are: the Financial Accounting Standards Board (FASB) in the United States, and the International Accounting Standards Board (IASB) based in London, England.