Question: Focus only on this section in the memorandum which is explain what deferred outflows of resources and deferred inflows of resources are. Your ability to clearly define deferrals in a manner that the non-accountants on the board of supervisors will understand is key in this section.
The GASB has been observing that the elected officials of some governments are having trouble grasping the concept of deferrals and why they are starting to pop up in financial statements. You will be acting as the finance officer of a county government whose board of supervisors has been expressing its confusion about deferrals. They don't understand what deferrals are, where they came from, and what their impact will be on the county's financial health as reported in its CAFR. Some of the supervisors, in their confusion, want to know why the county should have to follow these standards and are threatening to pass an ordinance prohibiting the county from reporting deferrals. To address their concerns (and talk them down off the fence), develop a memorandum to the supervisors. The other three sections for the memorandum are explain why the county has begun to report deferrals, describe what is required by Statements 63 and 65 and how it differs from what the county currently is doing, and the last section is on the conclusion on the opinion of the requirements of GASB Statements 63 and 65. If you agree with them, explain why.
ANS. YES I AGREE WITH AS A FINANCIAL OFFICER OF THE COMPANY TO ISSUE MEMORANDUM TO SUPERVISOR OF THE COMPANY CLARIFYING THE CONFUSION WHICH THEY HAVE IN UNDERSTANDING THE CONCEPT OF DEFERRALS.
IT IS RIGHT TO MENTION ABOUT DEFERRALS , FROM WHERE THEY COME FROM,WHAT THEIR IMPACT ON FINANCIAL HEALTH OF THE COMPANY,AS IS REQUIRED BY STATEMENT 63 AND 65
IT IS ALSO RIGHT TO MENTION REQUIREMENTS OF GASB STATEMENT 63 AND 65
THIS WILL SORT OUT SUPERVISORS DOUBTS
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