Government financial reporting is the process whereby governments report their financial position and activities to the public at large. These reports are the standard that citizens, oversight bodies, and other stakeholders use to judge their government's efficiency, effectiveness, and over-all financial condition. This article examines government financial reporting from a historical perspective, and today; it also looks at contemporary issues and possible future trends.

History

Government financial reporting evolved through the twentieth century. The National Committee on Municipal Accounting (NCMA) was established in 1934 by the Government Finance Officers Association (GFOA) and began to promulgate formal standards. It issued the first "blue book" in 1936, Bulletin No. Six, Municipal Accounting Statements (GFOA, 1988). From that point, government financial reporting, along with government accounting and auditing, began to develop into what it is today.

The National Council on Governmental Accounting (NCGA), which succeeded the NCMA, initiated the basic...