Objectives of Governmental Financial Reporting
Why Governments Prepare Financial Statements
Government financial statements help citizens, legislators, creditors, and oversight agencies evaluate how public resources are obtained, managed, and spent. They also demonstrate compliance with legally adopted budgets.
- Demonstrate accountability.
- Provide decision-useful information.
- Show budgetary compliance.
- Evaluate financial condition.
Summary
Government reporting focuses on stewardship, transparency, and responsible financial management.