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Describe the similarities and differences between other non-profit organizations and government organizations based on the investigation...

Describe the similarities and differences between other non-profit organizations and government organizations based on the investigation of GASB standards. Give an example of the differences in regards to financial information, as well as the operations

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Answer #1

Similarities between the non-profit organization and the government organization

  1. Both the non-profit organization and the government organization have to follow the GAAP guidelines ,principles and procedures which ensure that the financial information is disclosed and reported in an effective and efficient manner and also ensure that the accounting is standardized over the entire industry whether it is a non-profit organization or a government organization.
  2. Both the non-profit organization and the government organization have to use the following financial statements namely the Statement of activities and the statement of the financial position.

Differences between the non-profit organization and the government organization:

  1. The non-profit organization has to follow the additional guidelines of FASB and the government organization have to follow the GASB in order to provide useful information and thereby aid in the financial reporting process.
  2. The non-profit organization has to use the Statement of Net Position for the display of financial information whereas the government organization have to display the financial information on the Statement of Financial Position.
  3. The non-profit organization for the purpose of reporting has to put together their Financial reports for their board of directors and their investors and this report is called the Report of Consolidated Financial Statements . The government organization on the other hand have to put forth a Comprehensive Annual Financial Report.
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