Government and for-profit organizations Coursework

Government and for-profit organizations - Coursework Example Reporting entity is referred to any business venture that is entrusted with reporting responsibilities. In context of this paper, both kinds of organizations are reporting entities, who have the obligation of preparing financial reports for benefit and interest of various stakeholders.Materiality is one of the GAAP conventions that are followed by all organizations irrespective of their nature of business. Materiality explains that an organization should discuss only significant information in its financial reports that of accounting nature. Lastly, full disclosure explains that every organization should disclose all necessary information so that financial position of the firm is correctly presented and understood. Additionally, these two kinds of organizations share certain similarities in terms of components of financial statements as well such as journal, trial balance and ledger (Carmichael & Graham, 2012; Delaney & Whittington, 2007).Another point of similarity that can be recog nized between government and commercial organizations is debt refunding. Both these organizations are significantly engaged in debt refunding. In other words, they create new debts whose proceeds are employed for paying off previous debt. The sole reason behind both organizations engaged in this activity is to ensure security of their financial gain (GASB, 2013).Dissimilarities between government and non-government organization’s accountingGovernment organizations are significantly different from various for-profit firms in a number of ways.