Among the most contentious of federal accounting issues is how the Federal Reserve System should be accounted

Question:

Among the most contentious of federal accounting issues is how the Federal Reserve System should be accounted for in the Financial Report of the U.S. Government.
1. Review a recent of the Federal Reserve System ("Federal Reserve Banks Combined Statements of Condition"). The of the Federal Reserve System can be found on the system web page (for 2014: www.federalreserve.gov/publications/annual‐report/files/2014‐ annual‐report.pdf). In reviewing the be sure to examine that of the Federal Reserve System Banks Combined, not that of the Board of Governors.
a. What is the single largest asset of the Federal Reserve System; what is the single largest liability?
b. Suppose that the government were to consolidate the of the Fed with its other assets and liabilities. How would the largest asset and liability of the Fed affect the government's reported assets and liabilities? Would consolidation of those items increase or decrease the net financial position of the government? Explain.
2. What arguments can you make both for and against consolidating the Fed?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...