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Enhanced Financial Reporting for Unfunded Obligations in the US Economy

Author

Listed:
  • Elisha Adeboye

    (Computer Science and Quantitative Methods, Austin Peay State University)

  • Gbemisola Labisi

    (Accounting, Morgan State University)

  • Victor Ekere

    (Applied Geophysics, University of Ibadan)

Abstract

This article looks at the critical need for better financial reporting on unfunded obligations in the federal government of the United States’ budgeting and accounting processes. A more comprehensive view is offered by financial records like the yearly Financial Report of the United States Government (FRUSG) published by the U.S. Treasury, which includes incurred debts and undeclared promises. Actions to alleviate the long-term financial discrepancy can be prompted by including these estimates into the regular budget decision-making procedures. The paper highlights the need of openness in future spending by examining particular cases of undisclosed liabilities and contrasting federal cash-based bookkeeping with accrual accounting methods used by public companies. Therefore, the article proposes an improved reporting framework that promotes responsible financial management, urging decision-makers to make informed decisions about the nation’s financial health by carefully examining crucial components and consulting experts on government accounting principles.

Suggested Citation

  • Elisha Adeboye & Gbemisola Labisi & Victor Ekere, 2024. "Enhanced Financial Reporting for Unfunded Obligations in the US Economy," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(5), pages 1637-1646, May.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:5:p:1637-1646
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    References listed on IDEAS

    as
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    3. Rowan Jones & Évelyne Lande & Klaus Lüder & Marine Portal, 2013. "A Comparison of Budgeting and Accounting Reforms in the National Governments of France, Germany, the UK and the US," Post-Print hal-02480887, HAL.
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    5. Dambra, Michael & Even-Tov, Omri & Naughton, James P., 2023. "The economic consequences of GASB financial statement disclosure," Journal of Accounting and Economics, Elsevier, vol. 75(2).
    6. Ms. Suzanne Flynn & Delphine Moretti & Joseph Cavanagh, 2016. "Implementing Accrual Accounting in the Public Sector," IMF Technical Notes and Manuals 2016/006, International Monetary Fund.
    7. Hai (David) Guo & Milena Neshkova, 2018. "Fiscal severity and the choice of budget gap closing strategies," Public Money & Management, Taylor & Francis Journals, vol. 38(4), pages 305-314, June.
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