What is the required detail level for disclosing interfund receivables and payables?

Disclosing interfund receivables and payables is a critical aspect of governmental accounting, as it provides transparency regarding transactions between different funds within a government entity. The correct answer encompasses the requirement to disclose this information at multiple levels to ensure comprehensive reporting and understanding.

Disclosing interfund receivables and payables in the aggregate for nonmajor funds allows for simplification in reporting, as detailed information on smaller funds may not significantly impact financial decisions. However, providing details by fund type grants insight into broader categories of funds, enabling stakeholders to assess financial positions without overwhelming them with minutiae.

The requirement to disclose details for major funds is crucial since these funds significantly impact the overall financial statements and provide valuable information to users. Major funds often represent the most significant financial activities within a government and warrant a detailed look.

By allowing for disclosure at the levels of aggregate nonmajor funds, fund type, and major funds, the framework ensures that a variety of stakeholders—from financial analysts to citizens—can comprehend the relationships and financial positions pertinent to interfund transactions. This comprehensive disclosure approach fosters transparency and accountability in governmental financial reporting.