The current financial resources measurement focus and modified accrual basis of accounting are compatible with reporting the financial results in governmental fund financial statements because:

1. Government funds focus on accounting for infrastructure assets that require governments to adopt a modified approach.
2. Only the portion of the subsidiary's assets and liabilities are consolidated and noncontrolling interest is not reported.
3. Governmental activities report the current and modified impart financial results.
4. Governmental funds do not follow conventrial GAAP and typically receive modified audit opinions
5. Governmental funds focus on current activities that occur during an annual or budgetary cycle.