How frequently do governments prepare their general-purpose external financial reports to comply with GAAP?

Governments are required to prepare their general-purpose external financial reports annually to comply with Generally Accepted Accounting Principles (GAAP). This annual reporting aligns with the need to present a comprehensive overview of the government's financial position and operating results to stakeholders, including citizens, oversight bodies, and creditors. By adhering to this annual schedule, governments ensure that users of the financial statements have access to timely and relevant information that can be used for accountability and decision-making purposes.

While some governments may choose to prepare additional reports more frequently, such as quarterly or semiannually, these are not mandated by GAAP for general-purpose financial reporting. The annual requirement is a standard practice designed to maintain consistency and comparability among different government entities, facilitating a clearer understanding of their financial health over the fiscal year.