Wiley GAAP for Governments 2013: Interpretation and Application of Generally Accepted Accounting Principles for State and Local Governments

CHAPTER 2

FOUNDATIONS OF GOVERNMENTal ACCOUNTING

Introduction

Chapter Overview

Entities Covered by Governmental Accounting Principles

Distinguishing a Governmental Entity from a Not-for-Profit Organization

Overview of the History of Governmental Accounting Standards Setting

Objectives of Governmental Accounting and Financial Reporting

GASB Concepts Statement 1

Primary characteristics of a government’s structure and the services it provides

Control characteristics resulting from a government’s structure

Use of fund accounting for control purposes

Dissimilarities between similarly designated governments

Significant investment in non-revenue-producing capital assets

Nature of the political process

Users of financial reporting

Uses of financial reporting

Business-type activities

Accountability and interperiod equity

Characteristics of information in financial reporting

Limitations of financial reporting

Objectives of Financial Reporting

Communication Methods

Concepts Statement 3, Communication Methods in General-Purpose External Financial Reports that Contain Basic Financial Statements

Recognition in the basic financial statements

Disclosure in the notes to the financial statements

Presentation as required supplementary information

Presentation as supplementary information

Elements of Financial Statements

Hierarchy of Governmental Accounting Standards

GAAP Hierarchy for Governments

Other accounting literature

Codification of Certain FASB and AICPA Accounting and Financial Reporting ...