3 - Select Transactions Flashcards
Application of intraperiod income tax allocation
The following items are subject to the application of intraperiod income tax allocation:
- Discontinued operations
- Cumulative effects of accounting changes
- Prior-period adjustments
- Direct adjustments to capital accounts
Objective of Governmental Reporting
A. Fulfilling Public Accountability
B. Evaluating Operating Results
C. Assessing Service Levels and Ability to meet obligations
D. Operational Accountability
E. Fiscal Accountability
Type of Funds
A. Governmental Funds
*General Fund
*Special Revenue Fund
*Capital Proyect Funds
*Debt Service Funds
*Permanent Funds
B. Proprietary Fund
*Enterprice funds
*Internal Service Fund
C. Fiduciary Fund
*Pension trust fund
*Investment trust fund
*Private-Purpose trust fund
*Custodial Funds
The annual comprehensive financial report (ACFR)
- Management’s discussion and analysis
- Basic financial statements:
- Government-wide financial statements
- Fund financial statements
- Notes to the financial statements
- Required supplementary information (other than MD&A)
Annual Comprehensive Financial Report (ACFR) includes:
An introductory section, financial section, and statistical section. The financial section includes the financial statements, auditor’s report, and required supplementary information for the financial statements prepared for the required fiscal years. The statistical section includes financial, economic, and demographic information and their associated trends over the fiscal years presented in the financial statements and data not confined to the fiscal-year approach required of the financial statements.
Combining Fund statement
Is part of the comprehensive financial report but not part o the basic financial statement.
The basic financial statements required of state and local governments report fund financial statements for governmental and proprietary funds, focusing on major funds with nonmajor fund information aggregated or combined.
Blending Presentation
a) Primary Government and Component Unit have substantively the same goberning body if a voting majority of the PG governing body serves and constitutes a voting majority of the CU’s governing body
b) Operational responsibility means that the PG manages the CU essentially the same way it does its departments and agencies.
Discrete Presentation
Other CUs, including all affiliated tax-exempt entities whose resources are entirely for the benefit of the PG, are discretely presented.
If the governing body of the component unit is not “substantially the same”, the blending method is not required. Discrete presentation should be used unless the financial activities of the two entities are so intertwined as to make them substantially the same entity.
Revenues Entity-wide level
+ Receipts
+ Ending receivables
- Ending allawance
- beginning receivables
+ Beginning allawance
Revenues Fund level
+ Beginning receivables
- Beginning allowance
- Ending receivables
- Deferred revenues
+ Receipts
+ Available at YE
Derived tax revenue
Derived tax revenues result from taxes assessed on nonexchange transaction. Tax on hotel charges, sales taxes, personal and corporate taxes, and motor fuel taxes
Uncollectible Revenues
GASB N50.115 indicates governments should recognize revenues from property taxes net of estimated uncollectible amounts. The uncollectible taxes is not considered a bad debt expense because the measurement focus of a governmental fund is on expenditures, decreases in resources, rather than expenses.
Annual Comprehensive Financial Report (ACFR) Layout
1 MDA
2 Government-wide statement of net position
3 Government-wide statement of activities
4 Balance sheet gov funds
5 Reconciliation of balance sheet
6 Statement of revenues gv funds
7 Reconciliation of statement of revenue
8 Statement of propietary funds
9 Statement of revenue proprietary funds
10 Statement of CF
11 Notes to the FS
12 Required supplementary information
Contribution with donor restriction
- Program or purpose restrictions
- Time restrictions
- Capital restrictions; restricted for acquisition or construction of capital assets
- Endowments; not available for expenditures, earnings on the resources may be expended.
Cashflow for the sale of donated financial asset
Normally as cash inflows from investing activities.
EXCEPTIONS:
1. Donated financial assets w/o donor restriction that are converted nearly inmediately into cash willbe clasify as operating activity
2. If the donor restricts the use of the sales proceeds for a long-term purpose, such as the construction, then is an cash inflow for financing activies and simultaneously as cash outflow for investing activity
tax effect disclosures
The FASB requires that a public entity shall disclose the approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets (before allocation of valuation allowances). A nonpublic entity shall disclose the types of significant temporary differences and carryforwards but may omit disclosure of the tax effects of each type.
An entity shall disclose the amounts and expiration dates of operating loss and tax credit carryforwards for tax purposes. There is no requirement to disclose permanent differences.
initial measurement of lease liabilities
- Variable lease payments that depend on an index or a rate
- Guaranteed residual value expected to be payable
- Fixed payments, less any incentives receivable from the lessor
The exercise price of a purchase option is included in the initial measurement of a lease liability only if the lessee has a significant economic incentive to exercise that option.
