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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Notes & Samples

NOTE 1 – Summary of Significant Accounting Policies

General Introduction

Present a brief narrative discussing the agency and its components in this section.

The agency must present a summary of significant accounting policies either as:

  • The first of the notes to the financial statements
    –OR–
  • A separate item immediately preceding the notes

Note 1 must address the following situations:

  • The selection of an accounting treatment when the Generally Accepted Accounting Principles (GAAP) permits more than one approach
  • Accounting practices unique to state government
  • Unusual or innovative applications of GAAP

For a detailed checklist , see Note 1 – Summary of Significant Accounting Policies in the Agency Fiscal Year-End USAS Adjustments and AFR Checklist.