Exam 11: Public Sector Financial Reporting

The Public Sector Accounting Board suggested several objectives for the financial statements of federal, provincial, and territorial governments. List and briefly explain each of the four objectives and how these objectives are met with the various financial statements issued by governments.

One of the largest sources of revenue for governments is government transfers. Government transfers represent non-exchange revenue. Explain what "government transfer" is and why it is a non-exchange transaction. How are government transfers reported? Be sure to address reporting from the transferor and the recipient perspectives, separately.

In general, there are three types of government organizations. Identify and describe these three types and the accounting standards that are followed by each type of entity.

According to PSAB, when and how is revenue measured in government entities? Explain how transfers made through the tax system and tax concessions are different and how PSAB suggests these be treated.