What is the objective of financial reporting by state and local governments?

Expert Solution

Objectives of Financial Reporting by state and local governments:

To provide the information that serves to evaluate the accountability of the government towards the citizens of the country as they right to know information about the raising of public money and its spending, the debt holders
To provide the information required for stating the inter period equity as it arises from the government’s obligation to check if the revenue of the current year are enough to meet the benefits of the current year so that the current citizens do not defer the payment to the future taxpayers.
To provide the required information in a format that helps the users of this report in assessing the adequacy of the systems and controls, assessing the operating performance and also the integrity of the budgetary processes and functions.
To provide the users of the financial statement with the information that will help in evaluating the service , cost of services and the achievements etc

ekkarill92 answered 1 year ago

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