As a taxpayer referring to the information provided by your classmates related to the informational needs of the user group you have chosen, state whether the objectives of financial reporting they have listed meet your needs, whether any additional information is needed by your user group, and why this information would be beneficial to the financial decisions you would need to make. Are there any additional objectives that should be listed for your user group, if so what are they? How do your needs differ from the other user groups? how would I respond to the following: In reviewing the FASB concepts, I will address them from the school department point of view, which operates under the city government. Concept no.1 requires that financial statements help users to assess whether to donate to an organization, and to understand how (if they choose to donate) their resources will be used. For a school department it is imperative that the public know what their tax dollars are used for, and how the children of the community will be provided with a safe environment to learn and grow. FASB concept no.4 discusses how financial statements should show the stewardship of management responsibilities. For a government organization, transparency is very important, and proving that the resources provided are being used for the services and goods approved by voters is most important. The FASB concept no.8, as I read it, seems to be about potential and current investors to be able to use financial statements to make decisions about their finances and possibly additional investments. For the school department, federal grants make up a large piece of the budget. If we prove that a project is necessary, then we then have to provide backup showing that the resources provided through those grants were used for what was approved in the first place. Finally, the GASB no.1 says the financial reports must assist those invested in making economic, social and political decisions. The financial statements must be readable for the school board so that they feel like they are making the right decision for their children’s education and community (social), their taxes (economic) and that the decision they make would be what other voters would want them to make (political).
As a taxpayer referring to the information provided by your classmates related to the informational needs of the user group you have chosen, state whether the objectives of financial reporting they have listed meet your needs, whether any additional information is needed by your user group, and why this information would be beneficial to the financial decisions you would need to make. Are there any additional objectives that should be listed for your user group, if so what are they? How do your needs differ from the other user groups? how would I respond to the following:
In reviewing the FASB concepts, I will address them from the school department point of view, which operates under the city government. Concept no.1 requires that financial statements help users to assess whether to donate to an organization, and to understand how (if they choose to donate) their resources will be used. For a school department it is imperative that the public know what their tax dollars are used for, and how the children of the community will be provided with a safe environment to learn and grow. FASB concept no.4 discusses how financial statements should show the stewardship of management responsibilities. For a government organization, transparency is very important, and proving that the resources provided are being used for the services and goods approved by voters is most important.
The FASB concept no.8, as I read it, seems to be about potential and current investors to be able to use financial statements to make decisions about their finances and possibly additional investments. For the school department, federal grants make up a large piece of the budget. If we prove that a project is necessary, then we then have to provide backup showing that the resources provided through those grants were used for what was approved in the first place. Finally, the GASB no.1 says the financial reports must assist those invested in making economic, social and political decisions. The financial statements must be readable for the school board so that they feel like they are making the right decision for their children’s education and community (social), their taxes (economic) and that the decision they make would be what other voters would want them to make (political).
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