Upload
ehren
View
45
Download
1
Tags:
Embed Size (px)
DESCRIPTION
What's at Stake?. The U.S. Government’s Financial Statements and the Country's Fiscal Health. The role of CPAs . Serve as trusted advisors to a variety of organizations Help businesses and individuals achieve strong financial standing Protect the public interest - PowerPoint PPT Presentation
Citation preview
What's at Stake?The CPA Profession on Federal Fiscal Responsibility
The role of CPAs
• Serve as trusted advisors to a variety of organizations
• Help businesses and individuals achieve strong financial standing
• Protect the public interest• Explain complex financial issues
Today
• Overview of the federal budget• Insights into the federal financial statements• Nation’s deficit reality
Federal budget
Establishes the fiscal
goals envisioned by Congress
Measured on a cash
basis
Tool to help guide
spending decisions
Federal financial statements
Record of what has actually
happened
Prepared on an accrual
basis
Provide information
about longer-term implications
Revenue = $2.4 trillion Expenses = exceeded
revenue by $1.3 trillion
2012 financial statements
Assets=$2.7 trillion
Liabilities=$18.8 trillion
Accumulated deficit=
$16.1 trillion
2012 financial statements
U.S. financial statements differ from other organizationsMost financial statements show obligations or liabilities on balance sheetU.S. government’s financial statements do not include Social Security and Medicare
• Footnote disclosures • Not reflected as liabilities
Reality of future obligations
These future obligations equal:
Additional social insurance deficit $52 trillionCumulative deficit 16 trillion
Total deficit $68 trillion
Key data in publicly traded company’s financial statements
Revenue: how much money the company
is bringing in
Expenses: how much money the
company is spending
EarningsExpenses < Revenue
= Financially Healthy Company
In tr
illio
ns
2009 2010 2011 2012
$11.5$13.5
$14.8$16.1
Accumulated deficit
What’s next
Visit: aicpa.org/WhatsAtStake
Watch What’s at Stake: The CPA Profession on
Federal Financial Responsibility
Policymakers: read the Financial Report of the
U.S. Government
Citizens: read A Citizen’s Guide to the Fiscal Year 2012 Financial Report of
the U.S. Government
Join the public dialogue to make the
county’s fiscal health a national priority
(Optional)
(Add information about what you, your firm and/or your state society is doing in this area)
Thank you