Question
Governmental accounting is very different from financial accounting. The FASB Codificationonly applies to nongovernmental entities. State and local governments must follow GASB (Governmental Accounting Standards
Governmental accounting is very different from financial accounting. The FASB Codificationonly applies to nongovernmental entities. State and local governments must follow GASB (Governmental Accounting Standards Board) standards, whilefederal government reporting entities must follow FASAB (Federal Accounting Standards Advisory Board) standards.
- What are some issues you can think of that might be unique to governmental accounting?
- Why might a state government require that audited financial statements be prepared at its statewide and local levels?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Fund Accounting Governments use fund accounting which focuses on accountability and legal compliance rather than profitability This means that transactions are recorded and reported based on funds and ...
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Step: 2
Step: 3
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Governmental and Nonprofit Accounting
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
10th edition
132751267, 978-0132751261
