Governmental Financial Reporting Standards Flashcards

Which component of a state or local government's Annual Comprehensive Financial Report (ACFR) contains the independent auditor's report?

Answer: Financial section

The financial section of the ACFR contains the independent auditor's report, the MD&A, basic financial statements, notes, and required supplementary information.

What is 'fiscal transparency' as it relates to governmental financial reporting?

Answer: Providing clear, complete, and accessible financial information to stakeholders

Fiscal transparency means providing clear, complete, and accessible financial information so citizens and stakeholders can hold governments accountable.

Which GASB statement addresses pension reporting for state and local government employers?

Answer: GASB 68

GASB Statement No. 68 established accounting and financial reporting requirements for pensions provided through defined benefit plans by state and local government employers.

In governmental accounting, what is a 'fiduciary fund'?

Answer: A fund used to account for resources held in trust or as an agent for others

Fiduciary funds account for resources held by the government in a trustee or agent capacity for others, such as pension trust funds and agency funds.

What does GASB's concept of 'interperiod equity' mean in the context of governmental accounting?

Answer: Ensuring current-year revenues are sufficient to pay current-year costs

Interperiod equity means today's taxpayers are paying for today's services, not shifting the burden to future taxpayers.

Which fund type is typically used by state and local governments to account for general operations not assigned to another fund?

Answer: General Fund

The General Fund accounts for all financial resources not required to be accounted for in another fund and is typically the government's primary operating fund.