ACCY 407 ch 9. Top Questions & Answers. 100% Accurate. VERIFIED.

ACCY 407 ch 9. Top Questions & Answers. 100% Accurate. VERIFIED. two primary objectives of government financial reports - -1. to provide information that can be used to assess accountability 2. to assist users in making economic, social and poltical decisions characteristics of useful information - --understandability -reliability -relevance -timeliness -consistency -comparability areas to find useful info - --recognition in the FS -disclosures in the notes of the FS -presentation as RSI -presentation as supplementary info net position= - -(assets + deferred outflows) - (liabilities + deferred inflows) required supplementary info (RSI) - -used to provide info that is *essential* to place FS and related notes in the correct context ex: MD&A, budget to actual schedules and several pension disclosures other supplementary info - -used to provide info that is *useful* not essential in understanding the FS and related notes found in statistical section of CAFR governmental reporting entity - -consists of the primary government and all component units for which the primary government is financial accountable primary government - -state government or general purpose local government component unit - -legally separate organization for which the elected officials of the primary government are financially accountable reported by discrete (separate columns) presentations, or by blending the component unit's financial info with appropriate fund column a financial benefit or burden exists if the PG - --is entitled to the organization's resources -is legally obligated to finance the organization's deficits -is obligated in some other manner for the organization's debts a PG is financially accountable for another organization if: - --PG appoints a voting majority of the organization's governing board -the organization's is fiscally dependent on the PG sections of CAFR - -1. introductory 2. financial 3. statistical