GASB Concepts Statement No. 2 Summary
Why Governmental Accounting and Financial Reporting is
Although businesses receive revenues from a voluntary exchange between a willing buyer and seller, governments obtain resources primarily from the involuntary payment of taxes. Taxes paid by an individual taxpayer often bear little direct relationship to the services received by that taxpayer. These differences require separate accounting and financial reporting standards in order to provide information to meet the needs of stakeholders to assess government accountability and to make political, social, and economic decisions. The changes are based on the findings of extensive research by the GASB and others, as well as the results of the GASB s monitoring of state and local governments that have been reporting SEA performance information. Overall, taxpayers collectively focus on assessing the value received from the resources they provide to government. Governmental accounting and financial reporting standards aim to address this need for public accountability information by helping stakeholders assess how public resources are acquired and used, whether. Conforming terminology changes were also made to other sections.
In November 2008 the GASB issued Concepts Statement No. 5, Service Efforts and Accomplishments Reporting, an amendment of GASB Concepts Statement No. 2. The amendments reflect developments that have occurred since Concepts Statement 2 was issued in 1994.
Objectives of financial reporting gasb
Concepts Statement No. 2 asserts that information provided by governments should be intended (1) to assist in decision making and (2) to facilitate the process of decision making in the context of the public administration system and budgetary cycle.
Written by: Mandarin
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