Deck 25 Flashcards
Donor-imposed restrictions that are met in the same period they are received may be recorded as:
Unrestricted support (contribution revenue)
Journal entry for property taxes collected in advance
Dr. cash and Cr. deferred inflows of resources
Reciprocal interfund activity
Includes exchange-type transactions between funds (interfund loans and interfund services provided)
Nonreciprocal interfund activity
Represents non-exchange transactions between funds (interfund transfers and interfund reimbursements)
Analysis of significant budget variances shows up where in the GWFS?
MD and A
Most likely cause of a decline in bond’s market value?
Increase in interest rates
Conditional promises (ex: uncertainty about someone’s death); revenue recognition?
No revenue recognition in the current year
Unconditional gift is recognized at:
Fair value as an unrestricted donation and an offsetting expense
3 methods to create a new partnership interest with investment of additional capital
1) exact 2) bonus and 3) goodwill
3 Conditions that must be met in order to consolidate a VIE
1) Variable interest; 2) VIE; and 3) Is there a primary beneficiary
Ending ARO =
Beg. ARO + PV of new ARO + accretion expense - settlement paid
Accretion expense =
Beginning ARO x risk-adjusted rate
initial journal entry for ARO
Dr. Asset retirement cost (asset) and Cr. Asset retirement obligation (liability) (both at PV)
Journal entry for accretion expense
Dr. Accretion expense and Cr. ARO (liability)
Troubled debt restructure; Gain =
Carrying amount of the payable - FV asset/equity transferred
Ordinary gain/loss on troubled debt restricting (transfer of asset) =
Carrying amount of asset transferred - fair value of asset
What rate is used to calculate interest income on a note?
Market interest rate
Interest revenue earned =
Total cash to be received - PV of note
In order for losses to be accrued, they must be both:
Probable and estimable
Gain contingencies can not be recognized as revenue until:
They are settled and realized
