CAFR in Case of Governmental Accounting

Running Head: CAFR IN CASE OF THE GOVERNMENTAL ACCOUNTING
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CAFR IN CASE OF THE GOVERNMENT & NON PROFIT ORGANIZATION

CAFR IN CASE OF THE GOVERNMENTAL ACCOUNTING 2
Financial statements are the key reports that provide the numerical as well as the theoretical
aspect of how an organization performed in the particular year with respect to the previous years.
Moreover this kind of statement also contains the future goals and the existing key events that
took place because of which the company is at this position. Further the financial statements also
contains a section of the notes to accounts where the which delivers the answers to all the
complicated questions that cannot be understood just by vouching the figure presented in the
income statement, balance sheet or the statement of the cash flows. In this report a detailed
discussion of the comprehensive annual financial report with respect to the government entities
and the nonprofit entities have been undertaken in detail to vouch for the similarities, or
dissimilarities and the benefits and the outcomes one can have after incorporating such
methodology (Miller. 2015).
CAFR also termed as the Comprehensive Annual financial report is a set of the U.S government
financial statements, comprising the financial report of the state, municipal or the other
government entity that are required to comply with the Accounting standards driven by the
GASB, Government Accounting Board Standard. The federal government on the other hand
abides by the rules of the Federal Accounting Standards Advisory Board.
The compilation of the CAFR is done by the staff of the state or the municipal corporation and
the same is audited by the AICPA, American institute of the Certified Public Accounting.
Further the CAFR are based on the three major stages that is, Introductory, Financial and
Statistical. These contain the sufficient as well as the necessary information regarding the fund
accounting and Enterprise Authorities accounting (Find law, 2015).
Unlike most private based associations, it is the duty of the government to become responsive to
various groups and the organizations, including chosen authorities, different units of
governments, financial specialists, leasers, and natives that are centered on checking their
exercises and the daily operations conducted in the government. All types of checking
incorporate gathering and translating information, and this oversight capacity is frequently
performed through data given in administrative reports. Among the most significant kinds of
correspondence is the annual financial report, which depicts the income statement balance sheet
and the cash flow position of the government, working outcomes and money streams for a

CAFR IN CASE OF THE GOVERNMENTAL ACCOUNTING 3
specific bookkeeping period. All legislatures, including school, or the districts of different states,
build up their yearly money related reports as per standards built up by standard-setting experts
to give consistency and similarity to clients (Miller. 2015).
For governments to accomplish the target of responsibility, information of the financial
statements must be both important and dependable for sensibly educated clients who are using
these for the purpose of the decision making (Bartlett, 2016).
Following a time of research and examination over the period of more than 10 years, the GASB
as of late presumed that to meet the differed needs of a wide scope of clients, administrative
reports must give data viewing the open substance overall notwithstanding the conventional
reserve fiscal summaries. As needs be, this can simply be observed in June 1999 GASB
presented another monetary announcing model in Statement 34, Basic Financial Statements—
and Management's Discussion and Analysis—for State and Local Governments. The new model
incorporates the customary focal point of legislative store budget summaries identifying with
monetary responsibility (and the adjusted collection premise of bookkeeping) with new types of
detailing (e.g., government wide fiscal summaries). The two dimensions of money related
detailing are proposed to give the information to the clients that will eventually turn out to be the
more accountable step taken by the government and at the same time this can flourish at the
state as well as je local government as well and secondly to promote the understanding and the
awareness about the importance of the financial statements, especially to the users of it, so that
they are able to make the strategic, economic, social as well as the political decisions effectively
(NCES, 2017).
This was the case of the government entities and there are certain benefits, reaped by the
government for following such kind of the procedures, which have been outlined below.
 If CAFR is prepared on the perfect timing it acts as a vehicle that drives the
accountability and the stewardship. Below is the data which represents the timeliness and
the perspective of the users of the CAFR.