Becker - Gov't Acctg Flashcards
Governmental accounting has dual objectives including:
1) Operational accountability AS A WHOLE
2) Fiscal accountability for specific funding
Governmental funds balance sheet and statement of revenues, expenditures, and changes in fund balance:
CURRENT only because Current Financial Resources measurement focus
Balance Sheet: Current assets and deferred outflows - Current liabilities and deferred inflows \+ Fund balance = Total
Statement of revenues, expenditures, and changes in fund balance Revenue - Expenses \+ Other Financing Sources - Other Financing Uses = Fund Balance
Enterprise funds are required when 1 of 3 criteria is met:
- The activity of the fund is financed by debt secured by a pledge of fee revenue
- Laws require collection fees adequate to cover costs
- Pricing policies are established to produce fees to recover costs
Enterprise funds statement of net position and statement of revenues, expenses, and changes in fund net position
Economic resource focus - Carry everything (FA & LTD)
Statement of position
All assets and deferred outflows of resources
Less: All liabilities and deferred inflows of resources
= Net position
Statement of revenue, expenses, and changes in fund net position Operating revenue Less: Operating expenses Plus: Nonoperating revenue Less: Nonoperating expenses = Changes in net position
PASS KEY: What are the two most significant reconciling items between governmental funds and governmental-wide F/S?
Adding fixed assets excluded from governmental fund financial statements, AND
Subtracting non-current liabilities
PASS KEY: Additions of accrual basis revenues in excess of modified accrual revenues along with subtraction of debt related expenses are
not recognized in gov’t financial statements and are a frequent reconciling item
Fines and forfeitures
Charges for services
Special items are shown where and what is an example?
are shown on the statement after the excess of revenue over expenditures. Proceeds from the sale of capital assets is an example of a special item
Measurement and recognition criteria for landfill closure and post-closure costs
Equipment and facilities included in the Estimated total current cost of closure and post-closure care should not be reported as capital assets. Equipment, facilities, services, and final cover, included in the estimated total current cost, should be reported as a reduction of the accrued liability for landfill closure and post-closure care, when they are acquired.
for landfills using proprietary fund accounting, a portion of the estimated total current cost of landfill closure and postclosure care should be recognized as an expense and liability in each period that the landfill accepts solid waste.
If a government sponsors a pool but is not the predominant participant, what should it be classified as?
Enterprise Fund
If Government C is not the predominant participant, the pool would be treated as a stand-alone pool in substance and thus be accounted for in an enterprise fund and Government C’s participation in the pool would be considered incidental.
Required disclosures for debt and lease obligations:
Principal and interest requirements to maturity, presented separately, for each of the 5 subsequent fiscal years and in 5-year increments thereafter
Major fund reporting requirements do not apply to
Internal Service Funds
Narrative explanations of combining and individual fund statements
should be presented on divider pages, directly on the statements and schedules, or in a separate section
If a school district is financially dependent then it is classified as:
Component unit
