Public Sector Accounting and Budgeting

Public Sector Accounting and Budgeting

Investigating the effective factors for improving the financial reporting model for governmental funds

Document Type : Review Article

Authors
Mehdi Faraji 1
Teymor Jabbari 2
1 Accounting Group, Qazvin Branch, Islamic Azad University, Qazvin, Iran
2 Accounting Group, Nour Branch, Islamic Azad University, Mazandaran, Iran
Abstract
The reporting model for governmental funds has always been of particular importance. The Governmental Accounting Standards Board (GASB) has been actively engaged in the process of making improvements to the financial reporting model to provide more useful information to the users of the financial reports of governmental entities. The GASB proposed three recognition approaches to replace the current financial resources reporting model for governmental funds. The three approaches vary along a time dimension. The ‘‘near-term’’ model is the most similar to the current model with a specified reporting period of 60–90 days. A ‘‘short-term’’ model extends the transaction reporting to be the government’s one-year operating cycle. Finally, a ‘‘long-term’’ model would report both current and noncurrent assets and liabilities for governmental funds. This article, based on research by Marshall et al., raises questions about improving the reporting model for governmental funds, and finally provides recommendations. 
Keywords
New model of financial reporting
Governmental funds
Recognition & measurement approaches
CAFR

Subjects

Marshall, D., Fischer, M.L., Flasher, R., Holmes, A.F., Jessup, C.M. & Moore, L. (2018). Response to the GASB Invitation to Comment on Financial Reporting Model Improvements—Governmental Funds. Journal of Governmental & Nonprofit Accounting, 7(1), 87-96.
Public Sector Accounting and Budgeting
Volume 1, Issue 1
September 2020
Pages 48-57

  • Receive Date 05 November 2020
  • Revise Date 19 November 2020
  • Accept Date 27 November 2020