Home > Uncategorized > A Video You Should Watch – From the AICPA – Insights into the Federal Government’s Finances

A Video You Should Watch – From the AICPA – Insights into the Federal Government’s Finances

August 16, 2012

Here is a 10 minute video that you (everyone) should watch.  It is a little dry in parts, and probably could have been reduced to 6 minutes, but I commend the AICPA for preparing the video which in simple terms discusses some aspects of how the US federal budget and financial statements are prepared.  The bottom line from my viewpoint, whereas the annual budget prepared on a cash basis shows revenues, expenses and deficit (and it isn’t a pretty picture), the financial statements including the footnotes which are prepared on an accrual basis also indicate estimated future liabilities owned with social security and medicare numbers indicated in the footnotes only.  You make your own decision, but as indicated, the numbers are bad.  In addition to the numbers, what really concerns me is that Congress and the President are responsible for these numbers – whereas it is doubtful that very many of them understand the numbers or the repercussions that they have.  No one could operate a household or business budget like this and survive.  And any CEO, CFO or Board of Directors that operated like this would be at risk of termination.  To see the video, Click Here, and then click on the video.

Dave Tate, Esq. (San Francisco)

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