Deck 23 Flashcards
Hierarchy of Fair Value Inputs (3 levels)
Level 1: highest priority, observable; Level: observable; Level 3: lowest priority, unobservable
Calculation of the amount for the finance lease asset =
PV of the lease - depreciation expense
Income tax expense for the current year =
Taxable income x tax rate
For operating leases, if rent payments are not received in level amounts, how is rent revenue recognized?
Recognize on a straight line basis
The market value of a bond =
PV of principal amount + PV of all future interest payments
How does revenue earned on investments affect the sinking fund?
Increases the sinking fund
Three main sections included in the CAFR:
1) Intro 2) Basic financials and RSi 3) Statistical section
The financial statements of governments focus on two forms of accountability (Gov’t wide vs fund)
Gov’t wide: operational; Fund: fiscal accountability
Blended presentation
Occurs when the Board of the primary government is the same as the component unit OR if the component unit serves the primary gov’t exclusively
MD&A includes:
Easily readable analysis and analysis of significant variations (no variance analysis though)
What two financial statements are included in the gov’t wide financial statements?
1) statement of net position and 2)statement of activities
Infrastructure includes:
Streets, bridges, gutters (capitalize and record as general capital assets)
Modified approach for capitalization
Infrastructure assets that are part of a network are not required to be depreciated
Basic Financial statements for governmental accounting includes
Gov’t wide financials, fund financials, and notes
Primary government governmental activities includes which funds
GRaSPP + S
Primary government business-type activities includes which funds
Enterprise fund
Program revenue category types (SOC)
charges for Services; Operating grants and contributions; Capital grants and contributions
Major Fund Rules
10% of all governmental funds or all enterprise funds; 5% of all governmental funds and all enterprise funds (general fund will always be a major fund)
Reconcile fund balance of governmental funds and net position in gov’t wide (GALES BARE)
G: GRaSPP fund balance + noncurrent assets - noncurrent liabilities + internal service fund
Reconcile net change in fund balance and change in net position (GOES BARE)
G: GRaSPP net change in fund balance - other financing sources + Expenditures (capital outlay) + internal Service fund
Where is the budgetary information found and what is included?
Required supplementary information; Comparison schedules for the general fund and each special revenue fund
