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.
