A. Explain how to address compliance with Government Accounting Standards (GAS) in nonprofit and governmental financial...

A. Explain how to address compliance with Government Accounting Standards (GAS) in nonprofit and governmental financial statements. Support your response with academic source(s).

B. Explain how the analysis of nonprofit and governmental financial statements differs from analysis of traditional financial statements. Provide academic examples to support your response.

C. Compose example financial statements for your company as a nonprofit entity and as a governmental entity. Ensure all information is entered accurately and the statements are compliant with GAS.

Expert Solution

A) Government Accounting Standards Board (GASB) is responsible for issuing guidelines and framework regarding preparation and presentation of financial statements for state or local government entity, and non-profit organisations. GASB is also based on the principles issued by Financial Accounting Standard Board (FASB) for financial reporting purpose. Statement No – 29 of GASB is used for Not-for-Profit organisation accounting and financial reporting principles for government entities.

B) Entities are using modified accrual accounting method in preparation and presentation of financial statements instead of traditional accrual method of accounting where governmental organisations can report integrated and expected cash flow of the organisation to ensure the more accurate and precise financial situation of the organisation. GASB is not based on GAAPs’ principles and Financial Reporting Framework (FRF) and Financial Accounting Standard Board (FASB). And all the differences between FASB and GASB reporting can be divided in four categories like recognition, measurement, display, and disclosure.

C) FASB requires disclosure of assets and liabilities in liquidity order and GASB requires disclosure of assets and liabilities into current and non-current classification. Therefore, the presentation of financial statement as per GASB is also different from FASB reporting requirement where financial statements are based on standards issued by board regarding financial reporting purpose.

ekkarill92 answered 2 months ago

Governmental Accounting is different than financial accounting. What are some differences? So, how does governmental accounting...

Governmental Accounting is different than financial accounting. What are some differences? So, how does governmental accounting relate to other business areas? Why is it important that businesses be aware of how government does their accounting, or is it important to businesses?

1. The Governmental Accounting Standards Board has established rules for determining when a government should include...

1. The Governmental Accounting Standards Board has established rules for determining when a government should include another entity in its financial statements. 2. Distinguish between a primary government and a component unit. Include one example of each. 3. GASB permits two methods of reporting component units in the financial reporting entity. Describe the two methods and indicate when each should be used. 4. The City of X is deciding whether or not to include a transit system in its financial...

I am looking for a solution manual for "Accounting for Governmental and Nonprofit Organizations." The publisher...

I am looking for a solution manual for "Accounting for Governmental and Nonprofit Organizations." The publisher is Cambridge Business Publishers 2019 - First Edition - ISBN 978-1-61853-264-0.

Provide complete answers to the following on Governmental Reporting Entities: 1) The Governmental Accounting Standards Board...

Provide complete answers to the following on Governmental Reporting Entities: 1) The Governmental Accounting Standards Board has established rules for determining when a government should include another entity in its financial statements. 2) Distinguish between a primary government and a component unit. Include one example of each. 3) GASB permits two methods of reporting component units in the financial reporting entity. Describe the two methods and indicate when each should be used. 4) The City of X is deciding whether...

How does the Canadian Government treat special assessment tax in governmental accounting?

The FASB issues accounting standards in the form of: Financial Accounting Standards. Financial Technical Bulletins. Accounting...

The FASB issues accounting standards in the form of: Financial Accounting Standards. Financial Technical Bulletins. Accounting Standards Updates. Accounting Research Bulletins.

Explain the term accrual accounting and how it is used in governmental, not for profit and...

Explain the term accrual accounting and how it is used in governmental, not for profit and business enterprises.

Option #2: Governmental Reporting Entities Instructions: Provide complete answers to the following: The Governmental Accounting Standards...

Option #2: Governmental Reporting Entities Instructions: Provide complete answers to the following: The Governmental Accounting Standards Board has established rules for determining when a government should include another entity in its financial statements. Distinguish between a primary government and a component unit. Include one example of each. GASB permits two methods of reporting component units in the financial reporting entity. Describe the two methods and indicate when each should be used. The City of X is deciding whether or not...

What is the GASB (Governmental Accounting Standards Board) is. What is the GASB mission and the...

What is the GASB (Governmental Accounting Standards Board) is. What is the GASB mission and the GASB standard setting process?

How can corporation rules, government regulations, and accounting standards impact health care financial management. Provide an...

How can corporation rules, government regulations, and accounting standards impact health care financial management. Provide an example.

Question