A Recommended Reporting Format for College and University Financial Statements

Accounting practices for private schools are governed by the Financial Accounting Standards Board, while the practices for state schools are governed by the Governmental Accounting Standards Board. This situation creates the possibility of similar institutions issuing different types of financial reports. College and university financial reports should meet the following disclosure objectives: 1. the extent to which intergenerational equity has been achieved during a reporting period, 2. the extent to which the financial position has improved or deteriorated, 3. the provision of objective information that can be useful in evaluating efficiency and effectiveness, and 4. any contractual restrictions on the uses of resources. Financial statements should be presented on an accrual basis of accounting so that the operating statement will reflect objectively determined period cost and revenue data.