What is the purpose of government-wide financial statements?
The purpose of the government-wide financials statements is to consolidate financial information related to governmental organization into one report. When consolidating governmental fund financial statements into government-wide financial statements, they must report accrual-based economic resources information. Fiduciary funds (e.g. private purpose trust funds should not be included in the government-wide financial statements as their resources are not government entitled.
Furthermore, governmental and business-type activities will be organized in a combined manner in order to represent the total primary government. Additionally, discretely presented component units—legally separate entities for which the primary government is financially accountable—are shown on the face of the government-wide statements but will not be included in the combined financial report.
The government-wide financial statements assist users in:
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