What is the meaning of interperiod equity?
In the context of GASB’s interperiod reporting concepts, interperiod equity refers to the state in which current-period inflows of resources (or acquisitions of net assets) equal current- period costs of services.
What is interperiod equity in government accounting?
INTERPERIOD EQUITY is a government’s obligation to disclose whether current-year revenues were sufficient to pay for current-year benefits, or did current citizens defer payments to future taxpayers, i.e. it refers to whether current-year revenues are sufficient to pay for the services provided that year and whether …
What is meant by the term Interperiod equity and give an example to support your answer?
Interperiod equity is the state in which current period inflows of resources equal current period costs of services. For example, the burden of the cost of services is borne by present-year taxpayers and revenue providers.
What is meant by interperiod equity and what is its consequence for financial reporting?
What is meant by “interperiod equity,” and what is its consequence for financial reporting? Interperiod equity is the concept that taxpayers of today pay for the services that they receive and not shift the payment burden to taxpayers of the future.
What is inter period comparison?
Financial statements of two or more business enterprises may be compared over period of years. This is known as “inter-firm comparison” Financial statements of particular business enterprise maybe compared over two periods of years. This is known as “inter-period comparison”.
What report is part of the financial section of a CAFR?
Financial section – includes the independent auditor’s report and contains management’s discussion and analysis, government-wide financial statements, fund financial statements, notes to the financial statements, required supplementary information, combining financial statements, and schedules.
What does Interperiod mean?
Definition. The financial accounting term interperiod income tax allocation refers to the distribution of income tax expense between accounting periods. This occurs due to a timing difference between taxable income and the accounting income appearing in the company’s financial statements.
What are the components that are included in the minimum requirements for general purpose external financial reporting?
What are the components that are included in the minimum requirements for general purpose external financial reporting? MD&A, government-wide financial statements, fund financial statements, notes to the financial statements and RSI.
Why do state and local governments use different funds to account and report their activities?
Governmental accounting maintains tight control over resources, while also compartmentalizing activities into different funds in order to clarify how resources are being directed at various programs. Some types of funds use a different basis of accounting and measurement focus.
Which government funds typically prepare budgets?
Which government funds typically prepare budgets? -General fund only.
What is purpose of inter firm comparison?
The main purpose of IFC is improvement of efficiency by showing the management of participating firm its present achievements and possible weaknesses. These firms have to contribute their data to the central body which acts as a neutral body.
What is inter firm comparison and its advantages?
Inter-firm comparison technique is a method of self-analysis of the business by the businessmen themselves. The management of the business on the basis of results obtained from the self-analysis is bound to react and look around for means to improve its performance or increase productivity.
