Audit Opinions in US- Going Concern Doubt
Audit Opinions in US- Correction of Error
Auditor will provide unmodified opinion with emphasis of matter of paragraph if auditor finds correction of error in principle while auditing the financial statements. Emphasis of matter paragraph are added to audit reports when auditor feels that the matter be brought to the attention of the users who read the audit report. In case of correction of error not involving accounting principle, auditor will still issue an unmodified opinion with an emphasis of matter paragraph. Emphasis of matter paragraphs are found after the opinion paragraph in audit report.
Audit Opinions in US- Change in Accounting Principle
Auditor will issue unmodified opinion with emphasis of matter paragraph when there is a change in accounting principle from one which is accepted in GAAP to one which is also accepted GAAP, from one which is not accepted in GAAP to one which is accepted in GAAP and from one which is accepted in GAAP to one which is not accepted in GAAP. Emphasis of matter paragraph are added by the auditors in their audit reports in order to being matters into the attention of users of the audit report. Emphasis of matter paragraph is found after the opinion paragraph in the audit report.
US-Gaap - GASB - Required Supplementary Information
GASB required 4 types of supplementary information. They are pension schedules, public entity risk pool schedules, budgetary comparison schedule and modified approach for reporting schedules. Pension schedules depends on nature of plans. Public entity risk pool schedules provides information regarding revenues and claims development when government is a sponsor. Budgetary comparison schedules provides information on general and all major funds for which government has legally adopted a budget. Schedules reflecting conditions of government infrastructure and actual expenditure for maintaining government infrastructure is provided when government uses modified approach for reporting infrastructure.
US-Gaap - GASB - Notes to financial statements
Notes to disclosures in GASB are found in GASB Codification 2300 and GASB Statements No. 34, 38, 40, 67 and 68. Disclosures in Statement no 34 are description of government wide financial statement, policy of capitalizing assets and estimating useful life, segment information and policy for recognizing infrastructure. In others major disclosures are summary of accounting policies, description of reporting entity, disclosures on cash and investments, information relating to fixed assets, long term debts, pensions, commitments and contingencies, information on amounts exceeding budgets, disclosures of individual funds and risk related to deposits and investments.
US-Gaap - GASB - Fiduciary Funds
Four types of Fiduciary funds are Pension Trust funds, Investment Trust funds, Private Purpose Trust funds and Agency funds. Pension trust funds are funds held in trust for payment of employee retirement and benefits. Investment trust funds are funds held in a trust when government is trustee. Private purpose trust funds are trust arrangements where principal remains intact and income generated is used for the benefits. Agency funds are funds held by government in a purely custodial capacity.
US-Gaap - GASB - Proprietary Funds
There are two types of Proprietary funds in governmental financial statements. They are Internal Service Funds which report on activities that provides goods and services to other funds of government on cost-reimbursement basis and Enterprise Funds which report activities that provide goods and services to external users for a fee.
US-Gaap - GASB - Governmental Funds
Five governmental funds are general funds, service revenue funds, debt service funds, capital projects funds and permanent funds. General funds accounts for all resources which are not accounted in any other funds. Special revenue funds accounts for revenues restricted for expenditures for specific purposes. Debt service finds accounts for revenues restricted for payment of long term debts. Capital projects funds accounts for revenues restricted on capital projects. Permanent funds accounts for revenues restricted to the extent of principal and not earnings. Governmental funds financial statement are accounted for using modified accrual basis of accounting and measurement focus is current financial resources rather than economic resources. Current financial resources measurement means that government focuses on only current financial resources available. Under modified accrual basis of accounting revenues are recognized when measurable and available for use and expenses are recognized when due, rather than accrued.
US-Gaap - GASB - Fund Financial Statements
There are 11 types of funds under GASB. 5 are governmental, 2 are proprietary and 4 are fiduciary. With 11 types of funds, fund financial statements for government are presented for each fund category. GASB encourages few funds as possible. Funds financial statements do not report all funds but only major funds. A reconciliation between fund financial statements and governmental wide financial statement is required and is presented at the bottom of fund financial statement or in a schedule immediately after the fund financial statement.
US-Gaap - GASB - Government Wide Financial Statements
Government-wide financial statements in government reporting includes Statements of Net Position and Statement of Activities. Statement of net position is similar to balance sheet. Net position is equal to Assets plus Deferred Outflow of Resources less Liabilities less Deferred Inflow of Resources. Net Position is divided into Net investment in capital assets, Restricted capital and Unrestricted capital. Statement of Activities reports government revenues and expenses. Revenues are Program Revenues divided into charges of services, operating grants and capital grants. Expenses are divided into governmental activities and business type activities. Accounting in government wide financial statements is done like business enterprises using full accrual method as basis of accounting.
US-Gaap - GASB - Management Discussion and Analyis
Management Discussion and Analysis in government financial statements includes discussion on financial statements providing condensed financial information from other statements prepared. It provides an analysis of significant variances between original budget, final budget and actual results. It also provides a description of capital assets and long term debts as well as a discussion on use of modified approach to report on infrastructure assets. Finally it provides a discussion on facts, decisions or conditions having significant effect on government's financial position.
US-Gaap - GASB - Requirements of Government Financial Statements
The requirements of government financial statements are management discussion and analysis, government-wide financial statements, fund financial statements, notes to financial statements and required supplementary information. Government may provide as other supplementary information "Comprehensive Annual Financial Report" which includes introductory, financial and statistical sections.
US-Gaap - GASB - Government Accounting Accountability
Government Accounting focuses on operational accountability and fiscal accountability. Operational accountability is demonstrated by government-wide financial statements. Fiscal accountability is demonstrated through fund financial statement. Integrated approach in government accounting requires reconciliation between government wide financial statements and fund financial statements.
US-Gaap : GASB - Elements of Financial Statements
GASB Concept Statement 4 establishes definitions of governmental financial statements. They are assets, liabilities, deferred outflow of resources, deferred inflow of resources and net position. These relate to statement of financial position. Elements of resource flow statement are outflow and inflow of resources. Deferred outflow of resources is consumption of assets by government in future period and deferred inflow of resources is acquisition of assets by government in future period.
US-Gaap : GASB - SEA Reporting
US-Gaap : GASB - Objectives of Financial Reporting
GASB Concept Statement 1 establishes objectives for financial reporting of governmental entities for both state and local government. The users of governmental entities financial statements are the citizens, legislative and oversight bodies, investors and creditors. The government financial reports are used to compare actual financial results with budgets, to assess financial conditions and results of operations, assist in determining compliance with laws and in evaluating effectiveness and efficiency.
US-Gaap : FASB & GASB
On July 1, 2009, FASB's Accounting Standards Codification became the single source of US GAAP for non-governmental entities. GASB's Accounting Standards Codification is applicable for governmental entities. FASB did not change GAAP, but restructured the existing standards and hence provides a cohesive set of standards. FASB's codification includes all GAAP and relevant literature of SEC. FASB issues Accounting Standards Updates to update the codifications.
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