42 Flashcards
deck 42
what are gov-mandated nonexch. trans?
higher level of gov/state provides funds and mandates certain act’s by another lower level of gov. for environmental cleanup, etc.
what are voluntary non-exch trans?
gov rec’s res’s and does not provide equal res’s
(grant agreements)
in regards to rev. recog. req’s, how are time, eligibility, and contingency req’s applied?
- time = for all non-exch rev’s
(rev 1st recog’d in period res’s must be used/begin)
.
..derived and imposed tax rev’s are only subj. to time req’s - eligibility = for gov-mandated and voluntary non-exch.
- contingency = only for voluntary non-exch
when are derived and imposed tax rev’s recog’d?
*imposed:
billed/recorded = rev
*derived:
rec’d = rev
*restricted grants = earned when spent
what are the alt’s for expend. recognition and how are they accounted?
*purch method:
initial purch…
Dr: expend
Cr: V/P
no JE for use of item…
on hand at YE…
Dr: supplies inv
Cr: nonspendable
*consumption method:
initial purch…
Dr: supplies inv.
Cr: V/P
use of item…
Dr: expend (when consumed)
Cr: supplies inv
no JE for on hand at YE…
*both methods require a portion of fund bal. as nonspendable for CA’s not able to meet current obl’s
what period do current expend’s, cap. outlays, and debt svc’s benefit?
- current expend = CY
- cap outlay = CY and FY
- debt svc = PY, CY, and FY
- intergov’l = transfers
- first 3 are expend’s, and last is OFU’s (Dr’d)
- cap outlays are purch. of FA’s
how are proceeds from LTD and pmt of LTD accounted?
- proceeds = Cr OFS
- pmt = Dr expend’s for “P” + and separate acc. for int
what are class’ns of gov. expend’s?
- fxn’l/program = public safety, edu, gen gov svc’s
- org’l units = police and fire dept (in public safety)
-act. = drug and highway
(in police unit)
-character = current expend, cap. outlays, debt svc, intergov. (in act.)
- object = chart of acc’s
(of expend’s)
expend’s of a gov. unit for insurance extending over 1 accounting period:
may be alloc’d b/w or among acc’ing periods or accounted for as expend’s of the period of acq.
(purch. vs. consumption)
are rev’s from prop. taxes recog’d when avail. and measurable?
yes
how are exchange and non-exch. trans’ distinguished?
by the relationship b/w the amt of value given and rec’d
are intergov. rev’s included in est’d rev’s?
yes
how are grant rev’s recog’d?
in the year in which the monies are used
what kind of account is progress billings in regards to LT contracts?
it is a contra CA account
the JE for collection of accounts prev’ly written off is:
Dr: cash
Cr: allow.
sec’s of a sub. that are convertible into P co’s stock shall be considered:
potential common shares of the P for consol’d diluted EPS
what is the accounting for encumbrances?
*commit funds for PO’s
JE for PO:
Dr: encumb 90
Cr: BC 90
JE for reversal:
Dr: BC 45 (1/2 sold)
Cr: encumb 45
JE for actual cost:
Dr: expend 44
Cr: V/P (cash) 44
JE to close encumb:
Dr: BC 45 (leftover)
Cr: encumb 45
JE for inclusion of O/S E:
Dr: unassigned fund bal 45
Cr: fund bal, committed 45
*encumbrances serve to reduce unassigned fund bal’s to det. degree of spendable res’s to CF to NY spending cycle
what is the diff. b/w reciprocal and nonreciprocal interfund transfers?
- reciprocal = exchange type trans
(loans and svc’s provided)
(ext. pricing) - nonreciprocal = nonexch. trans
(OFS/OFU - transfers and reimbursements)
what are special items and extraordinary items in GASB?
- special items = U/I
- ex’s include:
- sale of gov cap. A’s
- termination ben’s
- early retirement program offered to all emp’s
- sig. forgiveness of debt
*extraordinary items = U+I
*ex’s:
- environmental disaster
- sig. dmg from terrorists
(presented after special items)
what are def’d inflows + outflows?
they are acq./consumption of NA in 1 period that apply to future periods (OCI)
*sources:
- imposed non-exch rev trans
- gov-mandated + voluntary
- refunding debt
- sale of intra-equity transfers
- leases
- reg’d op’s
- A’s assoc’d w/ unavail res’shg
