Financial reporting, as the final product of the accounting process, is influenced by features such as the business environment, user needs, and stakeholder goals of financial information. However, the financial reporting of government and public entities, as well as for-profit and commercial entities, play a similar role in fulfilling accountability and providing information for decision-making (based on stewardship theory); But there are also significant differences between the reports they extract. At the same time, public sector financial statements contain important elements and information, and financial statements (which are legally required for the financial sector only financial reporting) are just one of these items. In terms of level of importance, research has shown that it is on a par with other elements of public sector financial reporting. The government, as the largest public institution and sector, municipalities and other non-governmental public institutions, carry out two types of activities to achieve their goals. The Governmental Accounting Standards Board (GASB) has categorized these activities as follows: First- governance activities (non-commercial) and secondcommercial and consignment activities. Governance (non-commercial) activities differentiate public sector financial reporting from (private) for-profit institutions; However, in most countries, the financial reporting of public sector business and consignment activities is not significantly different from that of private for-profit institutions, and both use the same accounting bases and standards according to the accounting principles used. Environmental characteristics in public sector governance activities, how to obtain resources to fund these activities, citizens' rights based on accountability regarding how and where resources are used, information needs of users of financial reports, obligation of elected officials to be financially accountable, etc. There are examples that in some way in the method of financial reporting, the type and amount of information disclosure in these reports will be effective.
