Application of Principles of Accounting and Financial Reporting To Public Broadcasting Entities i
1 INTRODUCTION
1.1 Background The Public Telecommunications Financing Act of 1978 (Public Law 95-567) required that the Corporation for Public Broadcasting (CPB), in consultation with the Comptroller General of the United States, develop accounting principles which shall be used uniformly by all public broadcasting entities receiving funds taking into account organizational differences among various categories of such entities. To meet its responsibilities under this statutory mandate, CPB developed the Application of Principles of Accounting and Financial Reporting to Public Telecommunications Entities (the Principles) to provide guidance on accounting and reporting for public broadcasting entities. A wide variety of users are interested in the financial statements of public broadcasting entities. Among the principal users are
(1) contributors,
(2) the entitys trustees or directors,
(3) its employees,
(4) the Corporation for Public Broadcasting,
(5) the U.S. Congress, state legislatures, and governmental grant-making departments and agencies, (6) the entitys creditors and potential creditors, and
(7) constituent organizations.
CPBs intention in providing financial reporting requirements for CPB grantees is that improved accounting and financial reporting by all public broadcasting entities will: ! Produce financial statements throughout the public broadcasting industry that are in conformity with Generally Accepted Accounting Principles (GAAP) ! Help managers and members of the grantees governing boards fulfill their fiduciary responsibility with regard to financial management ! Meet the challenge of greater public accountability mandated by Congress and the contributing public ! Increase the amount of meaningful and comparable financial information available to the public broadcasting community. 1.2 Overview This overview defines the nature, scope, and applicability of accounting requirements and the basic financial statements to be prepared by public broadcasting entities as a condition of receipt of funds from CPB. The accounting principles apply to all public broadcasting entities which are CPB grant recipients, regardless of the manner in which such entities are owned, operated, or affiliated with other public or private organizations. The Principles are outlined as follows:
Section 1 Introduction
Section 2 Generally Accepted Accounting Principles for Public Broadcasting Entities
Section 3 Accounting and Reporting for Public Broadcasting Entities Following FASB
Section 4 Accounting and Reporting for Public Broadcasting Entities Following GASB Appendix A Glossary of Acronyms Used Appendix B Glossary of Term Used Appendix C Index of Pronouncements and Issuance Dates
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