CPA Exam Information

The Accounting & Reporting - Taxation, Managerial, and Governmental and Not-for-Profit Organizations section tests candidates' knowledge of principles and procedures for federal income, estate and gift taxation, managerial accounting, and accounting for governmental and not-for-profit organizations, and the skills needed to apply them in public accounting engagements.

Governmental and Not-for-Profit Organizations

This portion covers knowledge applicable to accounting for governmental and not-for-profit organizations and its application in practice.  To demonstrate knowledge, candidates will be required to:

• Analyze and identify information relevant to governmental and not-for-profit accounting and reporting
• Identify alternative accounting and reporting policies and select those appropriate in specific situations
• Distinguish the relative weight of authority of differing sources of generally accepted accounting principles
• Perform procedures, formulate conclusions, and present results

Governmental and Not-for-Profit Organizations Content Specifications Outline

Accounting for governmental and not-for-profit organizations

A. Governmental entities

1. Measurement focus and basis of accounting
2. Objectives of financial reporting
3. Uses of fund accounting
4. Budgetary process
5. Financial reporting entity
6. Elements of financial statements
7. Conceptual reporting issues
8. Accounting and financial reporting for state and local governments

            a. Governmental-type funds and account groups

            b. Proprietary-type funds

            c. Fiduciary-type funds

9. Accounting and financial reporting for governmental not-for-profit organizations (including hospitals, colleges and universities, voluntary health and welfare organizations and other governmental not-for-profit organizations)

B. Nongovernmental not-for-profit organizations

1. Objectives of financial reporting
2. Elements of financial statements
3. Formats of financial statements
4. Accounting and financial reporting for nongovernmental not-for-profit organizations

            a. Revenues and contributions

            b. Restrictions on resources

            c. Expenses, including depreciation

Suggested Publications to Study - Governmental and Not-for-Profit Organizations

• Governmental Accounting Standards Board (GASB) Statements, Interpretations, and Technical Bulletins
• Financial Accounting Standards Board (FASB) Statements of Financial Accounting Standards and Interpretations, Accounting Principles Board Opinions, AICPA Accounting Research Bulletins, and FASB Technical Bulletins
• FASB Statement of Financial Accounting Concepts No. 4, "Objectives of Financial Reporting by Nonbusiness Organizations," and FASB Statement of Financial Accounting Concepts No. 6, "Elements of Financial Statements"
• AICPA Statement on Auditing Standards No. 69, "The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles in the Independent Auditor's Report"
• AICPA Audit and Accounting Guides and Statements of Position relating to governmental and and not-for-profit organizations
• Government Finance Officers Association, Governmental Accounting, Auditing, and Financial Reporting (the "Blue Book")
• Governmental and not-for-profit accounting textbooks and other accounting textbooks containing pertinent chapters

The above information was obtained from the AICPA's Information for Uniform CPA Examination Candidates, 15th Edition, Effective November 1999

Related Links:

AICPA

Texas State Board of Public Accountancy

MicroMash

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