Question

In order to comply with GASB standards, there are certain disclosures about capital assets that must be included in the basic financial statements. These disclosures are divided in order to distinguish between general capital assets and those that are reported in business-like activities. Some of the mandated disclosures for capital assets are:

1) Beginning of year and end of year balances showing accumulated depreciation as well as historical cost.

2) Capital Acquisitions during the year

3) Sales or other dispositions

4) Depreciation expense for the current period.

It is extremely important in my opinion for these governmental entities to have a very strict set of disclosures they must include in their financial statements. This can assure the public of the government's books and operations. Does anyone agree or disagree that governmental entities should be held to a more strict set of disclosures?

Answer 1

Yes, Government entities should be held to a more strict on set of disclosures. Disclosure are those information which are causes of any impacts on financial statements. Thus it is important to know about disclosures so that auditors can find out easily about the base of financial figures.

About Government entities, these are our those organisations which are running through are taxes paid money, So, its are complete right to know about fair information and clear facts about any other financial data. Our country's economy is also depends directly or indirectly on such governmental bodies. So, it is more important to following strictly the set of disclosures.