What users want in government financial reports

The Governmental Accounting Standards Board (GASB) sponsored a research study on note disclosures in 1987-1988. In a series of interviews, representatives of important user groups disclosed that the main interest of serious readers of government financial reports was on major individual operating funds and enterprise funds with material amounts of outstanding debt. Currently, data presented in the general purpose financial statements are aggregated by type. There was general agreement that notes to financial statements should be concise presentations of essential information. Respondents wanted to know if the balance sheets are representative of an entity's financial position during the fiscal year and whether events have occurred, or are expected to occur, that may affect revenue streams or expenditures materially. Interviewees offered several disclosures for the GASB to consider regarding details about each major category of assets, liabilities, and fund equity.