11/26 Chapter 12 Flashcards
six criteria
cash flow sales price sales markets financing for sub intercompany transactions and arrangements pg look at the long term
high inflationary economy
if the economy is unstable then you would use dollars
translation
95% of the time
take it through OCI
remeasurement
monetary balance sheets items are remeasured using the current rate
nonmonetary balance sheet items are remeasured using historical rates
balancing item goes to other income to balance the difference between the two
equity items
historical rate
balance sheet items
current rate
looks at slides for difference between the two
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Ch17
governmental accounting
GASB
governmental accounting standards board
set standards for government
GASB
takes into account governmental entities federal units veterans hospitals state units state universities local gov school districts municipalities port authorities fund basis financial statements general purpose financial statements government wide financial statements comprehensive annual financial report for governing body includes additional detailed info on specific aspects of the reporting entity introductory, financial, statistical
modified accrual basis
currently available resources
revenue
recorded when measurable and available to finance expenditures
accrual basis
property taxes collectible in current period or within 60 days after period end, firm intergovernmental grants, interest on investments
cash basis
fees for licenses and permits, parking meter receipts, intergovernmental grants that may be withdrawn
expenditures
recorded when measurable and incurred
governmental
revenues: any increase in net current financial resources other than from other financing sources
expenses/expenditures: any decrease in net current financial…..
funds
a fiscal and accounting entity with a self balancing set of accounts which are segregated for the purpose of carrying on specific activities in accordance with special regulations or restricitions
fund accounting
designed primarily to meet internal reporting and control objectives
governmental fund entities
dedicated to specific use general fund special revenue fund capital projects fund debt service fund permanent fund
proprietary fund entities
similar to business entities
enterprise fund
internal service fund
fiduciary entities
when the government acts as an agent or trustee for resources that belong to others trust funds a. pension b. investment trust fund c. private purpose trust fund Agency fund
pg 848
shows the different type of funds
operating statement model
financial resources inflows (by source)
-financial resources outflows (by function)
=change in fund balance
general fund
accounts for all financial resources that are not accounted for in another fund
accounts & transactions are more numerous than any other fund
special revenue fund
accounts for the proceeds of specific revenues sources
capital project fund
pg 848
debt service fund
848
permanent fund
848
