No Copy Work: Be 100% Original PowerPoint (5 To 10 Wit)

No Copy Work Got Be 100 Original Workpower Point 5 To 10 With Speake

No Copy Work Got Be 100% original work power point 5 to 10 with speaker notes For your next orientation meeting with your new hire, and to be helpful when other new accountants are hired, prepare a PowerPoint presentation of 5–10 slides with speaker notes that includes the following: Describe and explain at least 3 differences in for-profit entities and governmental agencies that cause them to have different required accounting procedures; include an example of each. At least 1 slide should explain which regulating authority oversees the accounting rules for governmental vs. for-profit entities. Include an example and brief explanation, in your own words, of the most recent new guideline established by the agency overseeing government accounting. Access the following Web site: At least 1 slide should explain at least 2 differences between governmental entities and nonprofit, nongovernmental agencies, including an example of each difference.

Paper For Above instruction

Effective financial management is crucial for different organizational types, notably for-profit entities, governmental agencies, and nonprofit organizations. While these entities share the goal of utilizing resources efficiently, their accounting procedures are distinct owing to their different objectives, regulatory environments, and operational frameworks. This paper explores key differences in accounting practices between for-profit entities and governmental agencies, discusses regulatory oversight specific to each, and compares governmental entities with nonprofit, nongovernmental organizations (NGOs).

Differences Between For-Profit Entities and Governmental Agencies

One primary distinction between for-profit entities and governmental agencies lies in their core objectives, which directly influence their accounting procedures. For-profit organizations aim to generate profit for shareholders, thus their financial reporting emphasizes profitability, investment performance, and shareholder equity. Conversely, governmental agencies focus on accountability for public funds, service delivery, and compliance with laws, emphasizing budget adherence and fund stewardship (Schaltegger & Burritt, 2018).

A second difference concerns accounting standards and reporting frameworks. For-profit entities generally follow Generally Accepted Accounting Principles (GAAP) under standards set by the Financial Accounting Standards Board (FASB). These standards facilitate transparency and comparability for investors and creditors. In contrast, governmental agencies adhere to the standards issued by the Governmental Accounting Standards Board (GASB). GASB standards are tailored to meet governmental needs for accountability and transparency to taxpayers and oversight bodies (GASB, 2023).

The third difference pertains to fund accounting and financial statement presentation. Governmental entities utilize fund accounting to segregate resources by purpose, ensuring compliance with specific restrictions and legal requirements. They prepare statements such as the Governmental Funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances. For-profit entities do not use fund accounting; instead, they prepare an income statement reflecting revenues, expenses, and profit or loss, providing a comprehensive view of financial performance (Christiaens & Rommel, 2017).

Regulatory Oversight of Accounting Rules

The oversight of accounting standards differs significantly between these two entities. For governmental agencies, GASB (Governmental Accounting Standards Board) is the primary regulator responsible for establishing accounting and financial reporting standards. GASB’s guidelines ensure transparency, accountability, and consistency across public sector entities (GASB, 2023).

In contrast, for-profit organizations are governed by the Financial Accounting Standards Board (FASB). FASB's standards aim to ensure financial statement comparability and relevance for investors and creditors, fostering confidence in the financial markets (FASB, 2023).

Recent Guidelines Established by Oversight Agencies

A recent significant development by GASB involves the implementation of new guidelines on leases, termed GASB Statement No. 87. Effective from 2021, this standard requires governmental entities to recognize lease assets and liabilities on their balance sheets, aligning lease accounting more closely with private sector standards. This change enhances transparency regarding lease obligations and improves comparability with other entities (GASB, 2021).

Differences Between Governmental Entities and Nonprofit, Nongovernmental Agencies

While governmental entities and nonprofit organizations share certain features, such as serving public interests without profit motives, they differ in organizational structure and funding sources. One key difference is governance and accountability; government agencies are part of public sector entities overseen by elected or appointed officials and are held accountable through legislative oversight and public audits (Siddiqui & Botma, 2017). Nonprofit organizations, although often reliant on donations and grants, are governed by a board of directors and are accountable primarily to their constituents and funding sources.

The second difference concerns financial reporting standards. Nonprofits follow FASB standards (specifically, FASB ASC 958), emphasizing mission achievement, program expenses, and management of donated funds. They produce financial statements such as the Statement of Financial Position, Statement of Activities, and Statement of Cash Flows, tailored to demonstrate accountability and stewardship rather than profitability (FASB, 2023).

Conclusion

Understanding the differences in accounting procedures and regulatory oversight among for-profit entities, governmental agencies, and nonprofit organizations is vital for accurate financial reporting and accountability. The distinctions in objectives, standards, and reporting frameworks reflect each entity’s purpose and the needs of its stakeholders. As accounting standards evolve—such as GASB’s recent lease accounting guidelines—organizations must stay informed to ensure compliance and enhance transparency, ultimately fostering trust and effective resource management across sectors.

References

• Christiaens, J., & Rommel, J. (2017). Fund accounting and financial management: A comparative analysis. Public Budgeting & Finance, 37(2), 83-102.
• FASB. (2023). About the Financial Accounting Standards Board. Retrieved from https://www.fasb.org
• GASB. (2021). GASB Statement No. 87 on Leases. Retrieved from https://www.gasb.org
• GASB. (2023). About GASB. Retrieved from https://www.gasb.org
• Schaltegger, S., & Burritt, R. (2018). Contemporary environmental accounting practices. Accounting, Auditing & Accountability Journal, 31(3), 715-731.
• Siddiqui, S., & Botma, H. (2017). Accountability in public sector organizations. Public Organization Review, 17, 177-191.