local government follow which principle
Answers
Answer:
That may be one of the most commonly asked questions about governmental accounting and financial reporting standards. It also has been among the most difficult to answer. The study had two parts. The first part involved a review of the laws and regulations of the 50 states to determine which states require some or all of their political subdivisions to prepare annual financial reports in conformity with GAAP. The second part of the study was a survey of governments that are not required by their states to follow GAAP. This research brief describes the methodology employed to make the estimate of GAAP compliance and summarizes the results. Based on the research findings, we estimate that 67 to 72 percent of state and local governmental entities included in the study follow GAAP.