In this problem, you will research reporting entities for governments in the GASB’s Governmental Accounting Research...

In this problem, you will research reporting entities for governments in the GASB’s Governmental Accounting Research System (GRS). Access the GRS database citing your results from the GASB guidance with utmost authoritative guidance. Provide requisite examples as requested from the GRS and cite your results from the Codification. Minimum of 2 pages required. Research the accounting issue and formulize your findings in a formal research memo. The formal memo should be in good form with proper grammar, conveying the results of your research.

Define a financial reporting entity. Give an example of a primary government. Define and give an example of a component unit. Explain the two methods of reporting the primary government and component units in the financial reporting entity and when each is required.

Expert Solution

The financial reporting entity consists of

(a) The Primary Government

(b) Departments for which the primary government is financially accountable

(c) Other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting.

Examples Of Primary Government ......

The primary government can be a state government , a general purpose local government such as a city or county , or a special purpose government such as school district.

Component Units...............

Component units are legally separate organizations for which the elected officials of the primary government are officially accountable . Component units can be an organization for which the nature and significance of its relationship with a primary government are such that exclusion would cause the reporting entity financial statements to be misleading or incomplete. For example.. A county school under state government.

Methods of reporting the primary government.........

(1) Blending

(2) Discrete Presentation

ekkarill92 answered 2 years ago

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...

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...

Describe the differences in reporting between governmental entities and not-for-profit entities. For example, what are the...

Describe the differences in reporting between governmental entities and not-for-profit entities. For example, what are the financial statements for each entity? What measurement focus and basis of accounting do each use?

Why is Service Efforts and Accomplishments reporting especially important for local governmental and not-for-profit entities? Identify...

Why is Service Efforts and Accomplishments reporting especially important for local governmental and not-for-profit entities? Identify the primary functions of the following entities as they relate to financial reporting by the federal government: Office of Management and Budget Department of Treasury Government Accountability Office

In financial accounting, why is reporting control procedures required (in governmental and GAAP reporting requirements) and...

In financial accounting, why is reporting control procedures required (in governmental and GAAP reporting requirements) and what information does it reveal about the company?

Which organization is responsible for establishing accounting principles for governmental entities? By whom was this organization...

Which organization is responsible for establishing accounting principles for governmental entities? By whom was this organization established?

Describe how accounting for fund balances for governmental funds is different from that of other entities.

Which authoritative body or bodies guide financial reporting for not-for-profits other than governmental entities? Discuss how...

Which authoritative body or bodies guide financial reporting for not-for-profits other than governmental entities? Discuss how this works for charities, hospitals, and colleges/universities.

Describe a difference between accounting and financial reporting between governmental and normal businesses. You may choose,...

Describe a difference between accounting and financial reporting between governmental and normal businesses. You may choose, for example, to discuss issues relative to financial statements, accounting for revenues and expenses (expenditures), fiduciary responsibility, etc.

What is the authoritative source of Generally Accepted Accounting Principles (GAAP) for non-governmental entities? What if...

What is the authoritative source of Generally Accepted Accounting Principles (GAAP) for non-governmental entities? What if non-governmental entities are publicly-held? What if you cannot find specific or similar guidance for your particular transaction or event – what are a few nonauthoritative sources of GAAP?

Question