How should a government describe the proprietary fund statement of position?

The proprietary fund statement of position can indeed be referred to as either a balance sheet or a statement of net assets, depending on the formatting approach the government chooses. This flexibility acknowledges both terms as acceptable within the context of financial reporting for proprietary funds.

In governmental accounting, proprietary funds are similar to private sector businesses in that they operate on a full accrual basis and are used to report on activities similar to a for-profit business. The term "balance sheet" is commonly used in the private sector, while "statement of net assets" is more aligned with governmental accounting terminology. Both terms convey the same fundamental financial information about a government’s proprietary fund, such as the organization’s assets, liabilities, and resulting net position.

Therefore, the response highlights the acceptable use of these terms and emphasizes that the selection is based on the formatting approach rather than a difference in content or principle. Thus, it accurately captures the reality of how these financial statements can be referred to in practice within governmental accounting.