Financial Reporting - Financial Statements
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What are the GAAP required components of financial statement:
- Basic financial statements
- Required supplementary information
What is a MD&a and what is the purpose:
MD&a is a management discussion and analysis. It's a part of an organization's annual financial statements.
The purpose of the MD&A is to provide a narrative explanation, through the eyes of management, of how governmental funds and government wide activities have performed as reported in the government wide statements.
Basic financial statements include:
- Government wide statements
- Fund level statements
- Notes to financial statements
Required supplementary information includes:
Budget to actual comparison
Modified approach: maintain up to date inventory, condition assessment (every 3 years), annual amount to maintain condition, document preservation level (current level or better)
Pension schedules for employer contributions and schedule of funding progress
Other Post Employment Benefits (OPEB) schedule of employer contributions and schedule of funding progress
What doesn't GAAP require as a part of financial statements:
- Supplemental Information
Government wide financial statements are measure on _______ resources and the _________ basis of accounting:
Economic resources and full accural basis
Government wide financial statements measure which types of activities:
- Government and business
- The focus is on financial and operational accountability
Which funds are excluded from government wide financial statements:
Interfund balances can be _____________ from financial statements?
Excluded; the focus is on fund balances of the same governmental or business unit.
Fund level financial statements focus on which funds:
- Governmental funds
- Proprietary funds
- Fiduciary funds
Fund level financial statements are required to reconcile back to which financial statements:
Government wide financial statements
- Fund balance for government units must tie back
- Net assets for business units must tie back
- Changes in fund balance must tie back
- Changes net assets must tie back
How are component units presented on financial statements:
Discretely in a separate column or Blended;
If presented discretely, each major component will have a separate column,
Nonmajor component units will be aggregrated into one column
If Blended, Component Unit's financial statements will be included with the appropriate funds of the primary government
The management discussion and analysis ______/_____ not ______ in the scope of a financial statement audit:
may/may not be
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