Thank you for considering the 8th edition of Essentials of Accounting for Governmental and Not-for-Profit Organizations. Our purpose is to provide a text that may be adopted in a variety of government/not-for-profit (GNP) course formats. We have used this text with stand-alone, three semester-hour classes, with half-semester GNP courses, and as a module in advanced accounting classes. It is appropriate for accounting majors or as part of a public administration program. Concepts are well illustrated with journal entries and do not require specific accounting knowledge beyond that provided in most principles of accounting courses. The coverage is effective in preparing candidates for the CPA examination.

The focus of the text is on the preparation of external financial statements. Among the more challenging aspects of governmental reporting is the preparation of government-wide financial statements. Our approach is to record governmental activities using the modified accrual basis of accounting that facilitates preparation of fund basis statements. These are illustrated in Chapters 2-7. In Chapter 8, the fund basis statements are converted to the accrual basis used in the government-wide financial statements through the use of worksheet journal entries. This approach has two advantages: (1) it is the approach most commonly applied in practice, and (2) it is an approach familiar to students who have studied the process of consolidation in their advanced accounting classes.

Chapter 10 is devoted to accounting and reporting by private not-for-profit organizations. This chapter provides essential coverage of private sector not-for-profits and may be all that is desired in courses taught in half a semester or as modules in advanced accounting. Alternatively for full semester courses, detailed applications of not-for-profit accounting for specific industries are provided in Chapters 9, 11, and 12. Chapters 9 and 11 illustrate transactions and reporting requirements unique to public and private colleges and universities. Similarly, Chapter 12 illustrates typical transactions and alternative financial statement formats common among health care organizations. Chapter 13 examines auditing and tax issues specific to governmental and not-for-profit organizations and concludes with a discussion of performance evaluation, including ratio analysis and service efforts and accomplishments reporting.

• An ongoing example integrated throughout chapters 2 - 8 and 13
  
• A continuous homework problem throughout chapters 2 - 8 and 13
  
• Instructor's Guide
  
• Suggested Quiz and Examination Questions and Problems
  
• Powerpoint slides
  
• A textbook website
  
• Excel financial statement templates for the continuous problem, and
  
• An additional practice set.

We are indebted to members of the Governmental Accounting Standards Board for permission to use GASB materials and to the American Institute of Certified Public Accountants for permission to use their materials. We thank Sue Cullers, Tarleton State University; Liz Keating, Harvard University; Saleha Khumawala, University of Houston; and Lela Pumphrey, Idaho State University for reviewing the 7th edition and providing suggestions. We are also indebted to the many users of the text for their comments. Additional comments and suggestions are welcome and may be addressed to: copleypa@jmu.edu.

Paul A. Copley
John H. Engstrom