Acc 548 Week 1 Essay

1649 WordsMay 1, 20127 Pages
Comprehensive Annual Financial Report for the city of Gilbert, Arizona Jacqueline Tate-Tafoya ACC/548 March 5, 2012 Christine Harms Comprehensive Annual Financial Report for the city of Gilbert, Arizona Per the request of the board an accounting overview has been prepared to brief all new members. The briefing will include a review in the differences of governmental accounting and for-profit financial accounting. Also included is an overview of the government reporting and reporting entity, and an assessment of the management discussion and analysis reporting unit (MD&A). Comprehensive Annual Financial Report A Comprehensive Annual Financial Report is a report that is encouraged but not necessarily required. The shortened name for this report is a CAFR. “A comprehensive annual financial report should be prepared and published, covering all funds and activities of the primary government (including its blended component units) and providing an overview of all discretely presented component units of the reporting entity.”(Copley, 2011, p. 20). The report is divided into three major sections; introductory, financial, and statistical. These parts include the following subsections: management’s discussion and analysis (MD&A), financial statements, fund statements, schedule, explanations and statistical analysis. Financial reporting is important for several reasons. The first is that reporting allows the Governmental Accounting Standards Board (GASB) to regulate activity and ensure that the organization is in compliance with the Generally Accepted Accounting Principles (GAAP). This creates uniformity in the environments for all agencies and businesses. “The GASB sets the accounting and financial reporting standards for state and local governments, whereas the FASB is the standard-setter for all other entities except the federal government.
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