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Special‐purpose governments engaged only in fiduciary activities should present the financial statements required for fiduciary funds. Governments are subject to various legal and contractual provisions arising from federal, state, and local laws, grants, contributions, and appropriations from other governments, and debt covenants.
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The chapter further describes why these are important factors in determining the objectives of financial reporting for governments. Wiley gaap for governments 2017 ‐ interpretation and application of generally accepted accounting principles for state and local governments.
Proprietary funds are used to account for a government's ongoing organizations and activities that are similar to those found in the private sector.
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