In this video, I explain government wide financial statements include statement oof net position and statement of activities.
https://farhatlectures.com/
CPA candidate or student? Start your free trial for more.

A government-wide financial statement is a comprehensive financial report prepared by governments to provide information about the financial position and activities of the government as a whole. It differs from fund financial statements, which are used to report more detailed information about the government's most significant funds. Key aspects of government-wide financial statements include:

Statement of Net Position: This statement provides a snapshot of the government's financial position at a specific point in time. It details the government's assets, liabilities, and the resulting net position. Net position is categorized into net investment in capital assets, restricted, and unrestricted.

Statement of Activities: This statement reports the government's financial activities over a fiscal year. It shows how these activities have affected the net position of the government. Revenues and expenses are categorized by program or function, such as public safety, education, and general administration.

Accrual Basis of Accounting: Government-wide financial statements are prepared using the accrual basis of accounting. This means revenues are recognized when earned, and expenses are recognized when incurred, regardless of when the cash is actually received or paid.

Consolidation of Government Entities: These statements consolidate the financial information of all government entities and activities, including governmental and business-type activities. This gives a complete picture of the government's overall financial health.

Component Units: The government-wide financial statement may also include information on component units, which are legally separate entities for which the primary government is financially accountable.

These statements are important for assessing a government's fiscal health, making policy decisions, and for transparency and accountability to the public and stakeholders. They are typically included in the Comprehensive Annual Financial Report (CAFR) of a government.


#cpaexaminindia #cpaexam #accountingmajor