عنوان مقاله [English]
There are a number of differences between accounting for business entities and those of government and other non-profit
entities. The <1ctivities of the latter type, consists of both "for profit" (like business) and "not for profit" affa1irs.
The fundamental differences between the accounting practices of the two types entities depends on the environmental
characteristics surrounding the "for profit" activities of government and non-porfit enterprises. These types of "for profit"
activities influences the accounting and reporting objectives of those entities and consequently bears upon the differences
between the conceptual frameworks underlying the accounting practices of the two types of enterprises.
Although in some developed nations, particularly the US, two types of conceptual frameworks are lately being discussed
(decision-based and responsibility-based), nonetheless, the official conceptual framework underlying the formulation of accounting
standards for businesses remains the decsion-based. A close
examination of these two types of frameworks would assist the understanding of the conceptual differences between the
accounting practices of these entities.
The main objective of this article is to discuss those differences.
This objective is accomplished through comparative analysis of Financial Accounting Standards Board's (FASB's) Statement of
Financial Accounting Concepts (SFAC) No. I and 2, and the Government Accounting Standards Board's (GASB's) SFAC
The comparative analysis of these concepts clarifies the major points of similarities and differences between the two conceptual
frameworks, with an emphasis on how the "for profit" activities of
government and non-profit entities impact the current accounting
Additionally, this paper analyzes the information needs of
different constituencies within the context of environmental
characteristics and how these characteristics impact the "objectives of financial reporting" for both types of entities. The
paper closes by providing a list summarizing the major points of similarities and differences between the two conceptual
frameworks and the resulting existing accounting and reporting practices.