Chapter 2 Accounting for government and not profit organizations Reyouf AlMattar 200800328

Q: Many government budget on a non-GAAP basis Q: Many government budget on a non-GAAP basis. What do they do in this situation

Its important to identify the government budgetary basis, if it differs significantly from the GAAP basis. There fore the government must do three things: 1. Maintain budgetary accounting control during the year on the budgetary basis while also accumulating the additional data needed for GAAP reporting. 2. Clearly distinguish its budgetary basis from the GAAP basis. 3. Prepare financial statement or schedule on both bases and explain and reconcile the differences between the budgetary basis and GAAP basis amounts.

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