Generally Accepted Accounting Principles GAAP for governments

Bloom's: Remember AACSB: Knowledge Application AICPA: FN Reporting 6) A government is financially accountable for another entity if it appoints the voting majority of the entity's governing board. Answer: FALSE Difficulty: 1 Easy Topic: Government Financial Reports Learning Objective: 09-03 Identify and describe the contents of various government financial reports. Bloom's: Remember AACSB: Knowledge Application AICPA: FN Reporting 5) The three sections of the comprehensive annual financial reports of state and local governments are (1) an introductory section, (2) a financial section, and (3) a supplemental section. Answer: TRUE Difficulty: 1 Easy Topic: The Government Reporting Entity Learning Objective: 09-01 Explain the key concepts and terms used in describing the government reporting entity. Bloom's: Remember AACSB: Knowledge Application AICPA: FN Reporting 4) Both a general purpose and a special purpose government could be considered examples of primary governments under GAAP. Answer: FALSE Difficulty: 1 Easy Topic: The Government Reporting Entity Learning Objective: 09-01 Explain the key concepts and terms used in describing the government reporting entity. Bloom's: Remember AACSB: Knowledge Application AICPA: FN Reporting 3) A financial reporting entity is defined as a primary government, as well as all other organizations that have an operational relationship with the primary government. Bloom's: Remember AACSB: Knowledge Application AICPA: FN Reporting 2) State and local governments should prepare only those financial reports required by law-generally year-end financial statements. Statement 98 is available on the GASB website, for Governmental and Nonprofit Entities, 18e (Reck) Chapter 9 Financial Reporting of State and Local Governments 1) In accordance with GASB standards, both a general purpose government and a special purpose government can be considered primary governments if certain criteria are met. The requirements of Statement 98 are effective for fiscal years ending after December 15, 2021. Governments may voluntarily present those required components in an ACFR, which also contains more background and explanatory information from management, additional financial statements disaggregating certain columns in the basic financial statements, and a “statistical section” of 10-year trends in financial, economic, demographic, and operating information. Thank you to everyone who worked with us and shared their input.”įinancial reports prepared following GAAP are required to contain basic financial statements (including notes to financial statements) and required supplementary information (such as management’s discussion and analysis).

Regarding the issuance of Statement 98, GASB Chair Joel Black said, “Once this issue came to our attention, it was clear that working with our stakeholders to rename this important document was simply the right thing to do. Otherwise, no changes were made to the report’s structure or content. 98, The Annual Comprehensive Financial Report, establishes the annual comprehensive financial report and ACFR in generally accepted accounting principles (GAAP) for state and local governments and eliminates the prior name and acronym. The changes in the name and acronym were widely supported by individuals and stakeholder groups that responded to the April 2021 Exposure Draft proposing the changes. The name change was prompted by GASB stakeholders raising concerns that the acronym of the prior name of the report sounds like a profoundly offensive term when spoken. Until now, the name applied to those reports was the comprehensive annual financial report.

Norwalk, CT, October 19, 2021-The Governmental Accounting Standards Board (GASB) today issued a pronouncement that changes the name of the most extensive report prepared following its standards to the annual comprehensive financial report or ACFR.

GASB Changes Name of Report to 'Annual Comprehensive Financial Report'

Generally Accepted Accounting Principles GAAP for governments