Under what condition must budgetary comparisons be presented as RSI?

Budgetary comparisons must be presented as Required Supplementary Information (RSI) when the budgeting framework is incompatible with the fund structure. This requirement ensures that users of financial statements can see the relationship between the financial plan and the resources allocated and how effectively those resources are used.

When the budget does not align with the fund structure, it can lead to misunderstandings regarding how effectively the budget is being managed. The inclusion of budgetary comparisons as RSI allows for enhanced transparency and provides stakeholders with additional context regarding the financial situation. It highlights any discrepancies and can help to identify areas of concern or improvement.

In contrast, when the budget aligns well with the fund structure, detailed comparisons may not be necessary, as the financial statements alone can more succinctly convey the financial health without the need for RSI.