What are the differences in financial reporting in a for-profit and government organization? What are the similarities in financial reporting in a for-profit and government organization? How do these differences and similarities affect the comparability of financial reports? Should these reports be comparable? Explain your response.Government organizations prepare their financials for the public at large, whereby they can be judged based on their ability to do good with the funds they were initially provided. For-profit organizations prepare their financial statements to be viewed by stakeholders – shareholders, creditors, lenders, employees, vendors, etc., whereby these users can determine the profitability of the company. Similarities that exist in financial reporting in for-profit and government organizations include their use of generally accepted accounting principles (GAAP).Reference:Phoenix accountant (2012) retrieved from http://www.phxcpas.net/for-profit-not-for-profit-and-government-organization-reporting/2010/06/Response 2The differences that exist in financial reporting for profit and government organizations is that government organizations do their financial's for the public so they can be judged on howthey handle their funds. Profit organizations do their financial where it can be viewed by stakeholders, creditors, and vendors. This helps these people be able to determine the profitability of the company and what the future might hold. The similarities in these two organizations is that they both use the Generally Accepted Accounting Principles. The only difference in how it affects the reports is that the public is the ones that see the government financial and the stakeholders, creditors or vendors are not able to see how they are doing financially or what the future holds. The profit organizations would be the same way, but the public would not be able to see these financial. I think these reports should be comparable so that everyone has a fair chance of seeing what the government is doing and what the profit organizations are
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