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Brief report Government and not for Profit Accounting
Finance & Accounting
Pages 4 (1004 words)
Financial Reporting Name: Institution: Date: Financial reporting is the process of governments and private business entities declaring or making public their financial activities. This is done to give credibility to these institutions and their activities…
Some governments set up independent bodies to formulate guidelines that are followed in the process of financial reporting. These bodies come up with rules and regulations that are followed by these entities. These independent bodies also determine which institutions are supposed to submit financial reports. This paper aims at illustrating a good understanding of the need for financial reporting by the government and private entities. This is going to be achieved by discussing the importance of regulation of financial reporting by government and not-for-profit entities. The regulation of financial reporting serves the purpose of acting as a check and balances system. The system is meant to limit the powers of the government on spending public finances, raising taxes to cover government spending. Regulation on financial reporting also helps shed light on government plans of public money expenditure (Ruppel, 2009 p201). This requires the government to state the amount of finances it holds and the nature of its intended expenditure. The purpose of government financial reporting is to provide information that facilitates decision making by different institutions. These institutions are citizens of that country, citizen representatives and private business entities. Intergovernmental agencies can also be described as parties that benefit from government financial reporting. ...
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