Question

Government Accounting has its distinct purpose amongst the “Accounting Elites” namely, ACCA and CPA. The standards and purpose(s) of Government Accounting are equal with those set by Accounting Bodies that lean more to Commercial Account. James L. Chan in his paper “Government Accounting: An Assessment of Theory, Purposes and Standards” look at the importance of Government Accounting and compare this to Commercial Accounting.

Please access the link below and review the paper.  
Chan, J., L. (2003). Government Accounting: An Assessment of Theory, Purposes and Standards.  
Available at  
http://jameslchan.com/papers/Chan2003Assess.pdf
I. Financial Statements from Commercial Accounts provide more information to the general public than those from Government Accounts?

Use information from the paper by Chan, J., L. & Rubin above, write a paper of no less than 2 pages to address the above question. To completely address the question, you should ensure that you cover:  A comprehensive review of the similarities and differences between commercial accounting and government accounting.  The types of financial statements prepared from both type of accounting methods  The kinds of information provided by both type of accounting methods

Answer 1

Contrasts Between Government Accounting And Commercial Accounting :

Following are the principle contrasts between government bookkeeping and business bookkeeping:

1. Which means

The bookkeeping framework kept up by the administration workplaces is known as government bookkeeping. The bookkeeping framework kept up by business associations is known as business bookkeeping.

2. Objective

Government bookkeeping is kept up by the administration workplaces to know the situation of open reserve. Business bookkeeping is kept up by business associations to know the benefit or misfortune and the money related position of the business.

3. Financial plan

Government bookkeeping entirely takes after the administration planning framework. business bookkeeping does not take after the administration planning framework.

4. Premise

Government bookkeeping is set up on money premise. Business bookkeeping is set up on money and in addition collection premise.

5. Level Of Accounting

Government bookkeeping has the arrangement of focal level and working level bookkeeping. Business bookkeeping has no arrangement of focal level and working level bookkeeping.

6. Principles And Provisions

Government bookkeeping is entirely kept up by following the money related standards and arrangements of government. Business bookkeeping is kept up by following the tenets and standards of 'Sound accounting guidelines'.

7. Data

Government bookkeeping gives data to the legislature about the receipts, exchange and affidavit of open assets. Business bookkeeping gives data to the concerned gatherings about the working outcome and monetary position of the business.

8. Inspecting

An Auditor General Office reviews the book of records held under government bookkeeping. An expert inspector can review the books of records held under business bookkeeping.

Related Topics

Which means Of Government Accounting

Highlights Of Government Accounting

Destinations Of Government Accounting

The types of financial statements prepared from both type of accounting methods:

Definition

Budgetary Statements speak to a formal record of the money related exercises of an element. These are composed reports that measure the money related quality, execution and liquidity of an organization. Monetary Statements mirror the money related impacts of business exchanges and occasions on the element.

Four Types of Financial Statements

The four fundamental kinds of monetary explanations are:

1. Explanation of Financial Position

Explanation of Financial Position, otherwise called the Balance Sheet, displays the budgetary position of an element at a given date. It is contained the accompanying three components:

Resources: Something a business claims or controls (e.g. money, stock, plant and hardware, and so forth)

Liabilities: Something a business owes to somebody (e.g. leasers, bank credits, and so forth)

Value: What the business owes to its proprietors. This speaks to the measure of capital that remaining parts in the business after its benefits are utilized to satisfy its remarkable liabilities. Value in this way speaks to the contrast between the advantages and liabilities.

View point by point clarification and Example of Statement of Financial Position

2. Pay Statement

Pay Statement, otherwise called the Profit and Loss Statement, reports the organization's money related execution as far as net benefit or misfortune over a predefined period. Wage Statement is made out of the accompanying two components:

Salary: What the business has earned over a period (e.g. deals income, profit pay, and so on)

Cost: The expense acquired by the business over a period (e.g. compensations and wages, deterioration, rental charges, and so forth)

Net benefit or misfortune is touched base by deducting costs from pay.

View itemized clarification and Example of Income Statement

3. Income Statement

Income Statement, exhibits the development in real money and bank adjusts over a period. The development in real money streams is grouped into the accompanying portions:

Working Activities: Represents the income from essential exercises of a business.

Contributing Activities: Represents income from the buy and offer of advantages other than inventories (e.g. buy of a manufacturing plant)

Financing Activities: Represents income created or spent on raising and reimbursing share capital and obligation together with the installments of intrigue and profits.

View definite clarification and Example of Cash Flow Statement

4. Explanation of Changes in Equity

Explanation of Changes in Equity, otherwise called the Statement of Retained Earnings, subtle elements the development in proprietors' value over a period. The development in proprietors' value is gotten from the accompanying parts:

Net Profit or misfortune amid the period as revealed in the salary explanation

Offer capital issued or reimbursed amid the period

Profit installments

Additions or misfortunes perceived specifically in value (e.g. revaluation surpluses)

Impacts of an adjustment in bookkeeping strategy or redress of bookkeeping blunder