Financial Accounting Standards Essay Example | Topics and Well Written Essays - 1000 words

Financial Accounting Standards - Essay Example The statistics present all this information in the form of numerical data. Thus, the CAFR is created. This essay will discuss the CAFR of Texas and all its major components. The Texas CAFR has a table of contents which divides the report into the three parts mentioned above. The first part is known as the introductory section and includes the letter of transmittal along with the structure of the government in Texas and the officials involved in ensuring its smooth running. The second part of the CAFR includes a number of different components. It begins with the independent auditor's report and continues with the management's discussion and analysis of the report. It also government financial statements which include the net assets and the statement of activities conducted by the state. Also included are the balance sheets, different funds statements which government's funds balance in the net assets and the revenues and expenditure in the governmental balance sheets. These proprietary funds also count the net assets and cash flows. Fiduciary net assets and the changes made to them are included in the financial report. Non-major funds are part of the financial statements of the CAFR. This includes governmental, special revenue, debt service, capital projects, and permanent funds. The balance sheets and revenue, expenditure and changes are also provided for in the fund balances. Non-major enterprise forms a separate aspect of the report. It includes statements of net assets, cash flows and revenues and changes made to the fund net assets for non-major enterprise and educational institutions: colleges and universities. Pension and other employee benefits, trust funds set for private purposes and funds used by agencies are included in the CAFR. The fiduciary net assets are observed along with the changes in these assets. The financial statement ends with a statement of the net activities and assets of the state. The statistical section includes the financial trends which include the net assets and governmental funds and the changes made to them. Also, the revenue is counted which includes the tax collections, retail sales and gross state product. The debt is also covered in the statistics with the outstanding debt and outstanding bond coverage being counted into it. Demographic information like the top ten employers in Texas and employment and unemployment rates are also presented in this statistical report. It ends with the capital assets and their operation in Texas. Thus, these three sections are divided into a variety of components to create the CAFR of Texas (Texas Comptroller of Public Accounts) which helps determine the funds and balance available to this state of America. Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis paper The GASB is the model applied by the General Accepted Accounting Principles used at the federal and state level in the United States. The FASB is also similar to this model because it too has been created to establish General Accounting Principles for the public interest of the country. However, the difference is that while GASB sets standards for financial accounting and reporting at the state and local government level, FASB does the same job for the private sector which includes not-for-profit