Accounting Standards And Financial Statements

Today we will explore the exciting world of the GASB and the FASB. Two of the most exciting boards in the accounting world today. We will compare and contrast each of the boards to get a more in-depth look into how each of the boards operate. We will go thru their mission statements in order to get a sense of how they operate and what are their overall goals. Let’s get started!

This memo is to serve as description of how the economy can impact projections related to revenues and expenditures in regards to the city budget. Several examples will be provided including explanations on why these items can have a tumultuous effect on the city budget. These examples include the effect property taxes and income taxes had on our fiscal stability as well as how even with proper accounting and financial reporting, the budget still fell victim to the economy.

Statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP), which refers to a set of rules, standards, and practices. They are used throughout the accounting industry to prepare and standardize financial statements that are issued and help investors and creditors compare companies within the same industry. Companies are expected to follow generally accepted accounting principles when they report their financial information. GAAP affects the measurement of economic activities and the disclosure of information about activities. It also affects the preparation and summarization of economic information, and the record keeping of measurements at average intervals.

Before diving directly into the article from the Governmental Accounting Standards Board (GASB) titled Governments to Report Liabilities Connected with Their Obligations to Clean Up Pollution (2006), one must first take a step back and take time to read, comprehend, and take to heart exactly what this organization stands for. Taken directly from their main web page under the tab labeled Education, the first thing seen in big, bold, blue letters is, “Due Process: The GASB Is Listening” followed by a definition of what listening means, “to hear with thoughtful attention”. When researching a little more into the GASB, it is easy to see how crucial listening truly is for them in order to fully accomplish their

GASB Technical Bulletins, and the following pronouncements if specifically made applicable to state and local governments by the AICPA; AICPA Industry Audit and Accounting Guides and AICPA Statements of Position.

|Nongraded Activities and|Watch the Financial Reporting for Business: Introduction to Accounting Reports and |Day 6 | |

Analyze the scope and sequence of budgeting in terms of sources of revenues, purpose of government expenditures, budget cycles, budget preparation, and debt administration.

As the business environment grows and companies find new ways to expand into their respective - or even new – markets, it is important that reporting standards stay up to date with changes and continue to assist companies in providing their users with useful accounting information. Information is labelled as being useful when it meets the

The author discuss the different acts and how budget officer worked around that time. that is soon There have been changes in Congress that affected the work of the federal agency. Practioners many years ago, we're aware of the budgeting issues. They are dealing with issues today that was a lot different from the past. Kilman claims that budget officers has become old extinct species such as “dinosaurs. Budget officers implemented strategies to help maintain a budget and to mishap technical that could result in problems later. Legislation changed in budget process has made it more difficult and heavier caseloads. There are now strict budget ceilings that have effect on policy choices. There are many arguments that explain why skilled budget officers are more important than ever in policymakers. Kilman compares old ancient officers to budget officers now. He acknowledged the change in budget process. Budget officers perspective is different than before. They are active and well alive. They explain the nature of the old-time budget officers. It is not your typical kind found in agencies. There are many differences and legislative changes have made it more difficult with heavy workloads. In many different levels of a budget officer in past still have same standard as today. The roles and time that being put into the job is different from past. It had become very difficult to argue the status is elevated or diminished. They explained some of the budget reforms enacted by Congress and the change in itself. Work and responsibilities for budget officers have increased. Budget officers roles and responsibilities have changed but not as drastically from our past work. They still carry out the traditional expectations and programs for the federal

The GASB Statement No. 56 was initiated on April 16, 2009. The essence of the new ruling aims to integrate the accounting and financial guidelines of the American Institute of Certified Public Accountants (AICPA) with the GASB’s accounting procedures that concern the state and local government (“New Release,” 2009; “Statement No. 56,” 2009; “Summary of Statement No. 56,” n.d). The statement does not create new financial reporting guidelines or requirements nor imply amendments to the current policies. Rather, it “relocates the existing” guidelines from the “professional auditing standards (“Statement No. 56,” 2009, p. 11). There are three major areas that are taken into consideration, namely “related party transactions, “going concern” attributes

The federal budget deals with the funding for each fiscal year. This budget set spending limits to allocate funding for specific federal funding. The budget provides data on financing of the government, receipt and surplus for different periods. There is a degree of complication when it comes to the budget but the best way to understand it is to verify what’s in the budget. According to the authors, the budget can contain expenditure control which provide payments for goods and services, management resources is an area where the organizations develops resources and planning for future allocation” (Lee, Johnson and Joyce 2013, 187). The various agencies will have information showing the different allocation within their budget. Agencies such as the Office of Management and Budget and the Government Accountability Office provides data and analysis. For example, “these agencies help determine strengths and weaknesses of programs, and assist in allocating resources in the budgetary process” (Lee, Johnson and Joyce 2013, 187).

The article that I have decided to summarize is “GASB Statement Provides Guidance on Partnerships between Governments and Public or Private Entities”. GASB stands for the Governmental Accounting Standards Board. The GASB is the source of generally accepted accounting principles used by state and local governments in the United States. GASB has issued different statements to provide guidance on reporting financial statement. The government has numerous partnerships where they can enter to accelerate cash flows associated with the use of specific capital assets.

The four primary financial statements found in annual reports include the income statement, balance sheet, statement of retained earnings and statement of cash flows. The data in each statement includes results from the most recent fiscal year-end, as well as historic data that stakeholders use in identifying trends from year to year. The financial statements include data required for stakeholders to calculate a variety of ratios and analysis which are critical in determining corporate levels of efficiency, profitability, liquidity, debt and sustainability. Since financial statements of public corporations are audited by independent firms, the financial data is typically accurate and generally reflects a standardized format following Generally Accepted Accounting Principles

The accounting policies of Tinley Park comport to the generally accepted accounting principle as applicable to governments. The Governmental Accounting Standards Board (GASB) is the legal body for enacting governmental accounting and

GASB requirements are interest-earning investment contracts, external investment pools, open-end mutual funds, debt securities, and equity securities that have readily determinable fair values to be reported in the balance sheet at fair value.