Accountability in Reporting Memo
To: Nonfinancial Audience
From: Gabriella Goodfield, Accountant
Date: June 25, 2012
Subject: Impact of public scrutiny on not-fot-profit reporting requirements The nonfinancial audience main concerns were and are why is the so much information in the financial reporting. Also, the nonfinancial is questioning why is it necessary for the extra information. Starting with the fact that all financial reports and statements has to give a full picture of what is going on within the organization. This one why it is important that there is a need for certain information. Not-for-profit organizations in part receive money from the U.S. Government. In some case receive contributions from pledges, contributions, donations. In part the not-for-profit could be the government itself. These not-for-profits organization and governments recently were being question by the public where is the money being spent. Therefore the Governmental Accounting Standards Board, Financial Accounting Standard Board has install several statement of standards that tells the not-for-profits what has to be reported and also how to report the financial statements. These standards from GASB and the FASB are the results of the nonfinancial audience concerns about not-for-profits and government entities. The concerns force the GASB and the FASB to review and update their standards. Also provide new standards as well.
Reference
Titard, P. W (2003). The Changing Landscape of Accounting Standards Setting. (cover story). CPA Journal, 73(11), 18. Retrieve from EBSCO on June 24, 2012