F9

Question 1

What are the statements in the Government-wide FS?

Answer 1

• Statement of Net Position
• Statement of Activities

Note that there are also Fund FS presented

Question 2

Government-wide FS:

What type of measurement focus?

What type of basis of accounting?

Answer 2

• Economic resources measurement focus
• Full accrual accounting

Remember that some of the Fund FS don’t share these traits…so Fiduciary funds are excluded (PAPI)!

Question 3

Goverment-wide FS

What are the components of the Gov-wide FS’ Statement of Net Position?

Answer 3

• Restricted
• Unrestricted
• Net Investment

You RUN to see your Net Position

Question 4

Do you capitalize construction period interest for capital assets used in governmental activities?

Answer 4

No! You only do that for commercial accounting.

Question 5

What is the Required Approach for capitalization of infrastructure assets?

Answer 5

All assets meeting capitalization requirements should be recorded and depreciated.

Depreciation expense that can be specifically identified with a functional category should be included in the direct expenses of that function (e.g. police car deprecation would be classified as public safety).

Question 6

What is the Modified Approach for capitalization of infrastructure assets?

Answer 6

Infrastructure assets that are a part of a network or subsystem of a network are NOT required.