Differences that exist in financial reporting in for-profit and government organizations include:
Government organizations prepare their financials for the public at large, whereby they can be judged based on their ability to do good with the funds they were initially provided. For-profit organizations prepare their financial statements to be viewed by stakeholders – shareholders, creditors, lenders, employees, vendors, etc., whereby these users can determine the profitability of the company.
Similarities that exist in financial reporting in for-profit and government organizations include:
Similarities that exist in financial reporting in for-profit and government organizations include their use of generally accepted accounting principles (GAAP).
Differences in reporting guidance in a for-profit and not-for-profit organization include:
Some of the differences that exist between reporting guidance for-profit and not-for-profit organizations include for-profits reporting their operational activities for the use of shareholders, lenders, vendors, creditors, and other stakeholders in the firm, whereas, not-for-profits are preparing their financials with the intent of demonstrating their ability to properly allocate and use the funding they were provided.
Similarities in reporting guidance in a for-profit and not-for-profit organization include:
Some of the similarities that exist between reporting guidance for-profit and not-for-profit organizations include, both types of organizations report their financial activities in accordance with GAAP.
Government and Not-for-Profit Accounting Examples of government / not-for-profit organizations: Examples of government / not-for-profit organizations include the American Red Cross – a humanitarian organization, the Small Business Administration – provider of support to...
Accountability in Reporting for Governmental and Not-for-Profit Organizations Accountability in Reporting Due to increased scrutiny and demand for accountability by the public, financial reporting by not-for-profit and governmental entities are now subject to specific requirements detailed in Governmental...
Fund Accounting and Proprietary Accounting What is fund accounting? Fund accounting is the accounting system that government and not-for-profit organizations use to closely watch each individual fund that the organization has established. This is to...
General Information about Government Accounting The traditional business model of accounting is inadequate for governments and not-for-profit organizations primarily because businesses differ from: The traditional business model of accounting is inadequate for governments and not-for-profit...
GASB and FASB Analysis GASB and FASB Analysis The Government Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) are accounting systems used by government agencies, not-for-profits, and publically traded (for-profit) companies. Below...
State of Arizona Government-Wide Statements and Reporting Entities Either using a previous selected government entity CAFR or another government entity, identify where the government-wide statements have been presented using the fund statements: In the State of Arizona’s 2008...
