Week 10 Essay Example | Topics and Well Written Essays - 500 words - 2

Week 10 - Essay Example Generally, the higher the proportion of operations financed by intergovernmental revenues, the greater is the risk borne by the government. Local government can keep low the risks connected with intergovernmental revenues by ensuring sound budgeting traditions. Establishing local sources of finance can reduce the relative impact of any fall in federal revenues. The ratio will determine whether the government is able to meet its obligations and supply the services that the public demand. Nonfinancial information that may be used to evaluate the performance of a college or university include: college or university governance, students satisfaction level, the level of satisfaction of employees, workers turnover, policies and objectives of the college or university. The information that provides the most insight to financial performance is turnover of employees because it points at dissatisfaction of workers, which may also indicate poor management, consequently leading to poor financial performance. The identified nonfinacial information can be said to be playing a crucial role in enhancing conventional financial reporting. They enhance the capability of the users of financial statement to appraise and forecast financial performance. Nonfinancial information is crucial predictors of financial performance. However, nonfinancial information about organizations is not usually available like financial information (Mohammadi, yusoff & Arumugam, 2011). I prefer IFRS tax approach to GAAP. Under IFRS, deferred tax allowance (DTA) is recorded at net if only it is anticipated to be realized while GAAP demands valuation if part or entire DTA will not be realized and the valuation is recorded at gross with corresponding allowance. Under IFR, the substantially enacted tax rate is applicable whereas under GAAP tax rate used for estimating deferred taxes is the prevailing tax