1.
Discuss the major contents of the fund financial statements and government wide financial
statements. Address why those statements are necessary in the government annual report.
Specify what government financial statements are required to be included in the annual report.
Then, compare and contrast the major contents of a selected fund financial statement or a
government wide financial statement to a similar financial statement prepared under GAAP.
Compare and contrast the users, objectives, contents and format of the government financial
statement you selected and its GAAP counterpart.
Solution
Major contents are given below:
Fund financial statements : These are the statements for reporting government accountability in
case of short-term and long-term liabilities.
Government-wide financial statements : These are the statements for reporting the operating
and financial results of a government firm. The fund-structure of the firm need not be disclosed
there. Examples of government-wide financial statements are