Financial Statements Prepared by Governments

This chapter describes some of the unique aspects of the financial statements prepared by governments. The information presented is consistent with the financial reporting model promulgated by Governmental Accounting Standards Board Statement No. 34 (GASBS 34), as amended. This information also incorporates the more important guidance provided by GASB staff through the use of Question and Answer Implementation Guides concerning the financial reporting model. The chapter discusses the following topics: basic financial statements; interfund and intra‐entity transactions; reporting deferred inflows and outflows of resources; comprehensive annual financial report; and cash flow statement preparation and reporting. It focuses on the overall financial reporting for governments. There are a number of specific reporting and presentation issues that relate to specific fund types. The basic financial statements used for a governmental entity's fair presentation in accordance with generally accepted accounting principles include both information reported on a government‐wide basis and information presented on a fund basis.