Explain how to address compliance with Government Accounting Standards (GAS) in nonprofit and governmental financial statements. Support your response with academic source (s).

Answer:The nonprofit and governmental institutions are closely linked by the common need to meet set out goals that involve people and not profit hence the need for a financial report that meets and suites their objectives a? and goals

Explanation:

governmental entities and non profit organizations contrast sharply from private sector organizations by the need to be responsive to a large number of different groups and organizations - elected officials, other units of governments, investors, creditors, and citizens that are focused on monitoring their activities. Non profit and governnt institutions. The financial statements used by nonprofit organizations differ somewhat from for profit organizations and include the Statement of Financial Position, Statement of Activities, Statement of Functional Expenses, and Statements to Cash Flows, with notes to the financial statements.). The Statement of Financial Position is similar to the balance sheet in for-profit organizations. Nonprofits have a net assets section rather than owners' equity since there are no owners.

All governments and non profit organizations, including school districts, develop their annual financial reports in accordance with principles established by standard-setting authorities to provide consistency and comparability for users. This is for them to meet accountability needs and transparency

As stated by National Center for Education Statistics, information provided by governments should contribute to accountability in the following areas:

Financial position and results of operations

Actual financial results compared with adopted budgets

Compliance with finance-related laws, rules and regulations

Efficiency and effectiveness of operations

Maintenance of governmental assets