ORGANIZATION AND CONTENT
Chapters 1 through 9 of this text focus on accounting and financial reporting issues of governmental entities at the state and local levels that follow the reporting model prescribed by GASB Statement No. 34 (GASBS 34). Chapters 10 and 11 are similar in that they describe how decision makers can use audited annual financial statements to analyze the financial performance of an entity. Chapter 13 focuses on budgeting and costing of services provided by government. In Chapters 12 and 14 through 17, readers will examine the accounting and financial reporting issues of federal government agencies, the federal government as a whole, and not-for-profit organizations as they demonstrate accountability for financial and operational performance and compliance with regulations to resource providers and other interested parties. Chapters 14 and 15 describe nongovernmental, not-for-profit organizations. Chapters 16 and 17 pay particular attention to the higher education and health care industries, respectively, encompassing entities that have governmental, commercial, and not-for-profit legal structures.

KEY CHANGES IN THIS EDITION
In this edition, users will find significant revisions to the text and several new or revised illustrations that will enhance readability and understanding. The City and County of Denver’s financial information is used to provide real-world examples of financial statements, schedules, and management discussion and analysis. More emphasis has been placed on accounting for internal service funds, new information is provided on reconciling modified accrual and accrual statements, and information is provided on how users can convert from a modified basis of accounting to an accrual basis. In addition, several new cases have been added to the end-of-chapter materials, two versions of the Smithville computerized project are provided, and revisions and additions have been made to the exercises and problems at the end of the chapters. As always, readers can count on this edition to include authoritative changes from the Financial Accounting Standards Board, Governmental Accounting Standards Board, Federal Accounting Standards Advisory Board, American Institute of Certified Public Accountants, Office of Management and Budget, and Government Accountability Office. Update bulletins will be provided periodically on the text Web site as new authoritative statements are issued.