The minimum desired requirements for general purpose external
financial reporting for state and local governments are:
- Comparison of the actual financial results is possible with the
legal budget adopted by government.
- The assessment of the organization’s financial conditions and
performance along with the results of operations could be available
to the external analyst.
- The external agency would able judge the governance of the
organization follows all laws, rules and regulations set-up by the
government.
- All those financial statements and results should be provided
to the external agency which will assist them in evaluating and
judging the efficiency and effectiveness of the organization
working.
- The financial reporting on behalf of the Federal government
should be such that it assists user agencies in evaluating a)
Budgetary evaluation, b) Organization operation performance and c)
proper availability of control systems.
- The Not-for-Profit organization, the minimum requirements of
reporting should provide data for assessing a) resources allocation
b) services provided and their adequacy, c) management ability and
performance judgement and d) economical use of the resources and
disposal of obligations towards society.