Power Point Presentation
acruzma
master-advancegovernmentalfundaccountingweek2PPpresentation1.pptxMy name is Claudia, these are my sons Brandon, 17 years old and Brayden, 9 years old. They are my princes and the reason to be a better person every day!
Claudia P. Carlo
Keiser University
Professor: Dr. Dahli Gray, CPA, CMA, CGMA, CFE
Advances Governmental & Fund Accounting
Project: GASB & NOTES TO FINANCIAL STATEMENT –AMENDMENT OF GASB CONCEPT No.3
GASB & Concept No.3
The article presented in this presentation is related to a proposed concepts statement with the notes to the financial statements.
"An amendment to GASB Concept No. 3”
What is GASB Concept No. 3
According to the GASB, this statement requires certain notes on government transactions with financial institutions and disclosure of the type of investments, among others. These notes are important in financial statements as they provide users with important information for decision making. ( GASB,1986)
GASB & Notes To Financial Statement – Amendment Of GASB Concept No.3
The proposed Concepts Statements describe the purpose of notes to financial statements and the users of those notes.
The types of information disclosed in notes to financial statements.
The types of information that are not appropriate for notes to financial statement.
The Degree of importance that information disclosed in notes to financial statements should possess. (Tysiac,K., 2020)
GASB & Notes To Financial Statement – Amendment Of GASB Concept No.3
Modifying the notes to the basic financial statements would involve identifying the type of information to be disclosed in the notes, evaluating the types of information that is appropriate to be disclosed and what is not.
The GASB proposes that certain characteristics distinguish the information that is essential for users when making social, economic, or political decisions, among others.
Type of Notes in the financial statements In the article "Understanding the Financial Report of the United States Government" by GAO (2018), it shows an illustrative list of notes for financial statements, the list is as follows
Financial statements with notes The following illustrations are an example of a Consolidated Balance Sheet from the Department of Homeland Security, in which the notes can be seen; also the detailed explanation of the notes contained in the financial statement.
Conclusion
One of the important differences between financial reporting standards for government and non-profit institutions compared to private companies and public companies, is that these last two entities operate for the benefit of stockholders rather than stake holders. In other words, private and public entities need to have clear and precise information so that investors or potential investors make the indicated decisions in order to receive good profits; In the case of the notes in the financial statements of government or non-profit entities, the notes in the financial statements are of great help in making social, economic, or political decisions for the well-being of the community and citizens in general.
References
GAO(2018) Understanding The Financial Report of The United States Government. Retrieved
From: https://www.gao.gov/assets/700/690105.pdf
GASB. (1986). Summary of Statement No.3 Retrieved from:
https://www.gasb.org/st/summary/gstsm3.html
Tysiac, K. (2020) GASB proposes criteria for financial statements disclosures. Retrieved from:
