Question

Before you prepare the financial statements for a Public Health Center, you need to review the financial reporting requirements for governmental and nonprofit organizations. Determine the following: The governing authority for regulating the financial reporting of both governmental and nonprofit organizations. The financial statements required. What is required in the notes and other narratives in the annual report? 1200 words

Answer 1

Q: Financial reporting for government and non profit organisations:-

International Financial reporting and accounting standard exists depending upon which financial reporting are done. The Non profit organisation generally prepare four financial statement for reporting.

These are as follows:

1:Balance sheets: Which shows the assets and liabilities of firms

2: income statements: which explains the profit and loss for the firm. for non profit companies basically changes of funds coming to company and uses of funds for operation.

3:changes of financial expenses:- this is only meant for non profit organisation, which meets their monitoring expenditures.

4: cash flow: this is for cash inflows and cash outflows for firm.

Financial reporting for Government organisation:

For government organisation Financial statement like balance sheet, income statement , cash flow statement and funds flow statement are prepared.

Financial reporting excersised based up on international financial reporting and accounting standard.

following are reported ;

-Materiality facts

Changes in accounting policies.

controlled and adminitrative items.

prior period items.

construction ,asset recognition,any buy back of share.

Expenses, Employee benefits, income grants etc

Overal finacial positions, liabilities and assets of firm.

Cash flows statement, Related party disclosures.

Budgetary control disclosure.etc.

Service concession agreements.

Consolidated financial statement and controlled items.

Reorting are done in very precise and in detailed as required by international reporting standard.

Notes to annual report:

Notes to annual report with narration denotes in detail disclosure of financial statement. It includes lengthy explanation of about company and its activities.