F10 - M6 - Deriving Government-wide Financial Statements and Reconciliation Requirements

Question 1

A reconciliation between the modified accrual governmental fund financial statements and the government-wide full accrual basis financial statements must be performed, including: (2 differences)

Answer 1

differences in the fund balances of government funds and net position in the government-wide financial statements, and differences in the net change in fund balances of governmental funds and the change in net position for governmental activities.

Question 2

The adjustments from governmental fund balance to net position from governmental activities can be remembered using the CANS

Answer 2

Total governmental fund balance
+ Capital assets
- Accumulated depreciation
- Non-current liabilities
+ Reduction of deferred inflows (eliminate/add back value of deferred inflows) - Accrued interest payable
+ Internal Service fund net position
Net position from governmental activities

Question 3

The adjustments from net change in governmental fund balance to change in net position of
governmental activities can be remembered using the CPAS RIDES mnemonic:

Answer 3

Net change in fund balance—governmental funds + Capital outlay
+ Principal payments on non-current debt
- Asset disposals (net book value)
- Sources (other financing sources – debt proceeds) + Revenue (measurable and unavailable)
- Interest expense (accrued)
- Depreciation Expense
+ Internal Service fund net revenue
Change in net position of governmental activities