Comprehensive Annual Financial Report Fiscal And Economic Condition Analysis Term Paper

Length: 5 pages Sources: 5 Subject: Economics Type: Term Paper Paper: #31970729 Related Topics: Annual Report, Financial Reporting, Sport Finance, Financial Crisis
Excerpt from Term Paper :

¶ … Annual Financial Report Fiscal and Economic Condition Analysis

The Piqua City School District in Ohio

Accounting in the public and private sectors is often subjected to differences, some of these differences being also observable at the level of budgeting. One important difference is constituted by the fact that economic agents -- that is private, for profit entities -- will construct the budgetary presentation in the form of annual financial reports. These financial reports are generally composed from financial statements and their qualitative presentation.

Governmental agencies on the other hand are requested to construct comprehensive annual financial reports (CAFR), which are more complex than annual financial reports. These reports contain added elements to the minimum elements requested from economic agents. In this order of ideas, while the financial statements are more detailed, the difference is also observed in the fact that the CAFRs are composed of three main parts -- the financial statements, the qualitative presentation of the financial statements as well as the quantitative interpretation through statistical information (Gauthier, 2005).

Aside from these main differences however, the annual financial reports and the comprehensive annual financial reports also reveal a series of similarities. Among the most important ones are the scope of the reports or the expectations from the reports. In this order of ideas, both categories of institutions -- public and private -- are under the constant observation of the public, and the reports strive to inform the public of the actions undertaken by the company. A difference is however observed in the construction of the public.

While in the case of governmental institutions, the public is constituted by the population, in the case of private organizations, the public is represented primarily by the share owners, but also by other categories of stakeholders, such as customers, staff members or business partners. The expectation of all these public categories is that both the annual financial report as well as the comprehensive annual financial reports reflect the reality of the operations undergone by the agencies. In this sense, the main requirement is that of transparency.

Finally, a last difference is constituted by the budgeting techniques. At the level of the


This is mostly possible as the economic agents are independent and generate their own funds, they can then redistribute towards investments. In the case of the governmental agencies however, these are reliant upon the state and often face resource shortages. This specifically implies that the emphasis on performance and efficiency in CAFRs is decreased. Nevertheless, this has been increasing throughout the past years (Wilson, Kattelus and Reck, 2007).

At a simplistic level, the non-discretionary policy is understood as a set of policies developed and implemented with the scope of creating stability within the economy. In the words of Robert Guell (2008), "nondiscretionary fiscal policy is that set of policies that are built into the system to stabilize the economy what growth is either too fast or too slow."

In terms of the effects the nondiscretionary policy generates, these have been widely discussed by the specialized literature, as well as praised and condemned by practitioners. Francesco Farina and Roberto Tamborini (2007) for instance state that nondiscretionary policies have a direct impact on interest rates and on inflation, which in turn generate national impacts upon the entire economy.

Robert Guell is more focused on the benefits of nondiscretionary policies and argues that these can generate more national output, which can in turn not only generate wealth and stability among economic agents, but also overall wealth and economic stability for the entire nation. In case however adjustments are made, the benefits would be lost for the simple reason that a discretionary policy -- one which is developed and implemented at a specific time, to address a specific issue -- does not have the ability to create economic stability. The author attributes the reasons as to why discretionary policy does not work to three specific elements -- "lags in recognizing, administering and operating fiscal policy" (Guell, 2008).

An important note which has to be made refers to the current application of nondiscretionary policy. It is as such argued that the application of stabilizers has become less susceptible to generalization ever since the internationalized financial crisis broke out in 2007. In this order of ideas, the governmental spending is directed towards the private sector through bailout…

Sources Used in Documents:


Farina, F., Tamborini, R., 2007, Macroeconomic policy in the European Monetary Union: from the old to the new stability and growth pact, Routledge

Gauthier, S.J., 2005, Governmental accounting, auditing and financial reporting, Government Finance Officers Association

Guell, R., 2008, Issues in economics today, 4th edition, The McGraw Hill Companies

Wilson, E.R., Reck, J.L., Kattellus, S.C., 2007, Accounting for governmental and nonprofit entities, 14th edition, The McGraw-Hill Companies
2011, CAFR-2000 sample reports, CAFR 2000, last accessed on January 14, 2011
2010, Central bank policy and the currency markets, Vantage FX, / last accessed on January 14, 2011
2010, Financial ratios, New MBA, / last accessed on January 14, 2011

Cite this Document:

"Comprehensive Annual Financial Report Fiscal And Economic Condition Analysis" (2011, January 14) Retrieved February 2, 2023, from

"Comprehensive Annual Financial Report Fiscal And Economic Condition Analysis" 14 January 2011. Web.2 February. 2023. <>

"Comprehensive Annual Financial Report Fiscal And Economic Condition Analysis", 14 January 2011, Accessed.2 February. 2023,

Related Documents
Tax Revenue Analysis for the
Words: 3540 Length: 10 Pages Topic: Economics Paper #: 31188106

The general fund collects over 86% of the total tax revenues and is the primary funding source for most commonwealth agencies. General fund tax revenues The largest significant source of tax revenues net of refunds is personal income tax. Reported personal income tax accounts for 38% of all tax revenues reported. Sales tax, which represents a tax on various items purchased by consumers, is the second largest category. Reported sales tax

Financial Analysis of Walmart
Words: 2905 Length: 11 Pages Topic: Business Paper #: 9135593

Financial Analysis of Wal Mart Financial Analysis of Wal-Mart Company Overview Wal-Mart Stores Inc. (WMT) is the largest global retail and chain stores operating in various formats. The company operates more than 8000 stores globally across its business segments, which include electronics, groceries, apparel, and small appliances. Although, Wal-Mart operates a global business, however, more than half of the company businesses are located in the United States. Wal-Mart also operates its global businesses

Financial Analysis Carpetright Bills Itself As Europe's
Words: 1164 Length: 4 Pages Topic: Business Paper #: 90598854

Financial Analysis Carpetright bills itself as Europe's "leading specialist carpet and floor coverings retailer." The company earns most of its revenue in the United Kingdom (80.1%) with the remainder coming from operations in Ireland, Belgium and the Netherlands. The group opened its first store in 1988 and now has 632 stores and over 3300 employees. This report is going to be a comprehensive analysis of Carpetright's financial situation. Five Year Summary Yahoo! Finance

Financial Analysis of International Airlines
Words: 5321 Length: 19 Pages Topic: Transportation Paper #: 14575221

The company's promotional literature emphasizes the synergistic effects of this corporate structure: "IAG combines the two leading airlines in the UK and Spain, enabling them to enhance their presence in the aviation market while retaining their individual brands and current operations. The airlines' customers benefit from a larger combined network for both passengers and cargo and a greater ability to invest in new products and services through improved financial

Non-Profit CAFR Nonprofit Accounting Is Based on
Words: 1384 Length: 5 Pages Topic: Economics Paper #: 55748072

Non-Profit CAFR Nonprofit accounting is based on the fund accounting, making it very complicated and different from for profit accounting. Fund accounting financial statements are divided into government wide, proprietary, and fiduciary statements. Nonprofit actually has three sets of financial statements compared to one set of financial statements for a for profit entity. Government wide statements basically cover the operations of the government in general. The government wide statements are the

Governmental Accounting What Are the
Words: 2146 Length: 6 Pages Topic: Accounting Paper #: 8458792

The report reflects the actual figures. Variance columns are presented in comparing the actual with the revised budget. There is reconciliation between the budgetary basis and GAAP are presented on the comparison schedule. The major differences are in how they are reported. There are budgetary comparison schedules provided for reserve funds. All special reserves are included. ("Comprehensive Annual Financial Report," 2012) 3C. Look at the note that describes the basis