Objectives and Contents

Question 1

Discuss the major contents of the fund financial statements and government wide financial statements. Address why those statements are necessary in the government annual report.Specify what government financial statements are required to be included in the annual report. Then, compare and contrast the major contents of a selected fund financial statement or a government wide financial statement to a similar financial statement prepared under GAAP.

Compare and contrast the users, objectives, contents and format of the government financial statement you selected and its GAAP counterpart.

Question 2

How do unrealized intercompany inventory profits from a prior period affect the computation of consolidated net income when the inventory is resold in the current period?

Is it important to know if the sale was upstream or downstream?

Why or why not?