What is used to prepare General Purpose External Financial Reports (GPEFR)?

The preparation of General Purpose External Financial Reports (GPEFR) primarily relies on GAAP (Generally Accepted Accounting Principles) guidelines. GAAP provides a standardized framework of accounting principles and practices that ensures consistency, transparency, and comparability in financial reporting across different entities. This is essential in the government sector, as GPEFR must present financial information that is understandable, relevant, and reliable for external users, including taxpayers, oversight bodies, and investors.

Following these guidelines helps ensure that GPEFR provides a clear and accurate depiction of an entity's financial position and performance, reinforcing public trust and fulfilling legal and regulatory obligations. By adhering to GAAP, governmental entities can effectively communicate their financial health and operational results.