tailieunhanh - Lecture Accounting for Governmental & nonprofit entities (16/e): Chapter 10 - Jacqueline, Suzanne, Earl

Chapter 10 - Analysis of governmental financial performance. After studying Chapter 10, you should be able to: Explain the importance of evaluating governmental financial performance, distinguish among and describe key financial performance concepts, identify and describe the contents of a comprehensive annual financial report (CAFR),. | Chapter 10 Analysis of Governmental Financial Performance Learning Objectives After studying Chapter 10, you should be able to: Explain the importance of evaluating governmental financial performance Distinguish among and describe key financial performance concepts, such as: Financial position Financial condition Economic condition Learning Objectives (Cont’d) Explain the relationships among environmental factors, organizational factors, and financial factors in determining governmental financial condition Identify, calculate, and interpret key ratios that measure financial performance Analyze financial performance using government-wide statements Describe how benchmarks can aid financial analysis An “early warning” system of impending financial difficulty can serve to prevent disruption in critical government services Taxpayers now, more than ever, demand better performance and greater transparency from government officials Analytical tools have evolved to better track governmental financial performance Why Evaluate Governmental Financial Performance? 3 Government managers Bond investors Creditors Legislators and oversight bodies Citizens Taxpayers Intermediaries, ., media, watchdog groups Who Needs to Know About Governmental Financial Condition? 3 What Do They Need to Know? Whether the government will continue as a viable entity providing the desired level of services to citizens in the future Whether future debt service payments will continue to be covered Whether the government is in compliance with all laws and regulations Financial position focuses on assets and liabilities that require cash or are normally converted to cash in the short-term (., liquidity) Financial condition refers to a government’s ability to meet its financial obligations to creditors and others as they become due, as well as its service obligations to constituents currently and in the future (., solvency) Economic condition is a term GASB uses to capture | Chapter 10 Analysis of Governmental Financial Performance Learning Objectives After studying Chapter 10, you should be able to: Explain the importance of evaluating governmental financial performance Distinguish among and describe key financial performance concepts, such as: Financial position Financial condition Economic condition Learning Objectives (Cont’d) Explain the relationships among environmental factors, organizational factors, and financial factors in determining governmental financial condition Identify, calculate, and interpret key ratios that measure financial performance Analyze financial performance using government-wide statements Describe how benchmarks can aid financial analysis An “early warning” system of impending financial difficulty can serve to prevent disruption in critical government services Taxpayers now, more than ever, demand better performance and greater transparency from government officials Analytical tools have evolved to better track .