Chapter 17 Flashcards
Governments General Funds
Governments don’t record fixed assets or long term debt
interperiod equity
determined whether current year revenues are sufficient to pay for services provided during that year or if future tax payers will be required to assume burdens for services previously provided or deficits created in prior years.
statement No 1
Governmental Accounting and Financial Reporting Principles
fund accounting
accounting for government entities
modified accrual method
used by government entities
elements of gov. financial statements
- Assets - Resources with present service capacity that the entity presently controls.
- Liabilities - Present obligations to sacrifice resources that the entity has little or no discretion to avoid
- a deferred outflow of resources - a consumption of net assets that is applicable to a future reporting period
- deferred inflow of resources - an acquisition of net assets that is applicable to a future reporting period..
- Net position - the residual of all other elements presented in a statement of financial condition
resource flows statement elements
outflow of resources - a consumption of net assets that is applicable to the current reporting period
inflow of resources - an acquisition of net assets that is applicable to the current reporting period
focus of gov accounting
changes in current financial resources available to provide services to the public in accordance with the governmental entity’s legally adopted budget
funds
units fiscal and accounting entities
expenditures
refers to decrease in net financial resources available under the current financial resources measurement focus
government funds
- general fund
- special revenue fund
- capital project fund
- debt service funds
- permanent funds
proprietary funds
enterprise funds
internal service funds
fiduciary funds
trust fund:
1. pension and other employee benefit trust funds
2. investment trust funds
3. private purpose trust funds
agency fund:
used to account for resources the government holds, solely in a custodial capacity
permanent fund
a fund that includes resources that are legally restricted so that the entity must maintain the principal and can use only the earnings from the fund’s resources to benefit the government’s programs for all citizens
(governmental fund) general fund
accounts for all financial resources except for those accounted for in another fund. includes transactions fro general governmental services provided by the entity’s executive, legislative, and judicial operations
(governmental fund) special revenue fund
accounts for the proceeds of specific revenue sources that are restricted for specified purposes. Includes resources and expenditures for operations, such as public libraries when a separate tax is levied for support
(governmental fund) capital project fund
accounts for financial resources for the acquisition or construction of the facilities and is closed once the project is completed
(governmental fund) debt service fund
accounts for the accumulation of resources for , and the payment of, general long-term debt principal and interest. This fund is used for servicing the government’s long term debt.
(governmental fund)permanent fund
accounts for resources that are restricted such that only earnings, but not principal, may be used in support of governmental programs that benefit the government or its citizenry
(proprietary fund) enterprise fund
accounts for operations of governmental units that charge for services provided to the general public. Includes activities financed in a manner similar to private business enterprises regarding the governing body’s intent to recover the costs of providing goods or services to the general public on a continuing basis through user charges. Includes operations that will run at a profit
(proprietary fund) internal service fund
accounts for the financing of good or services provided by one governmental unit’s department or agency to other of its departments or agencies. Usually provided on a cost reimbursement basis and are only offered to governmental agencies
example:
motor pool
(fiduciary funds) trust funds
pension trust fund - accounts for resources required to be held in trust for the members and beneficiaries of pension plans, other postemployment benefit plans, or other employee benefit plans
(fiduciary fund)investment trust funds
accounts for the external portion of investment pools reported by the sponsoring government
(fiduciary fund)private purpose trust fund
accounts for all other trust arrangements under which the fund’s resources are to be used to benefit specific individuals, private organizations, or other governments as the trust agreement specified