GASB considers budgetary accounting and reporting to be important. Explain one of the principles outlined by GASB related to budgetary accounting and reporting.
The first GASB principle for budgetary accounting states that “An annual budget(s) should be adopted by every governmental unit.” This means that all governmental organizations should operate on a specified budget. When a budget is adopted through law, it becomes binding to the governmental organizations. The other two principles rely on this principle to be in place.
Sorry for the deleted comments, I'm having fits with this thing. Another principle of budgetary accounting is "The accounting system should provide the basis for the appropriate budgetary control." Basically, this means that proper controls should be written into the law so the proper principle can be followed.
The first GASB principle for budgetary accounting states that “An annual budget(s) should be adopted by every governmental unit.” This means that all governmental organizations should operate on a specified budget. When a budget is adopted through law, it becomes binding to the governmental organizations. The other two principles rely on this principle to be in place.
ReplyDeleteSorry for the deleted comments, I'm having fits with this thing. Another principle of budgetary accounting is "The accounting system should provide the basis for the appropriate budgetary control." Basically, this means that proper controls should be written into the law so the proper principle can be followed.
ReplyDelete