In this article we will discuss about how the accounting for state and local governments is done. Introduction to the Accounting for State and Local Governments: In the United States, literally thousands of state and local government reporting entities touch the lives of the citizenry on a daily basis. In addition to the federal and 50 state governments, there are [...]
The unique aspects of the accounting process utilized within the governmental funds are the General Fund, Special Revenue Funds, Capital Projects Funds, Debt Service Funds, and Permanent Funds. It is in these funds where the distinct approach of governmental accounting can best be seen. Because of the dual nature of the reporting process, much of this accounting must be demonstrated [...]
At the core of a governmental reporting entity's comprehensive annual financial report are the general purpose financial statements. These statements are made up of government-wide financial statements and fund-based financial statements. Government-wide statements present financial information for both governmental activities and business-type activities. These statements measure economic resources and utilize accrual accounting. The fund-based statements separately present the governmental funds, [...]