FAR 8 (Governmental Accounting) Flashcards
Derived tax Revenue
Tax derived from exchange transactions, such as commercial sales
collected when people are doing something
Example sales tax, income tax
Imposed non-exchange revenues
tax impose on non-exchange transactions
collected because things exist
(fines & penalities, property tax)
Government-mandated transaction
Higher level of government provides funds and mandates certain activities
Revenue for certain activities
Example: Grant
Voluntary non-exchange
Govt receives resources and does not provide similar value
Represent contribution
Budgetary comparison must be presented…
on the same basis of accounting as the adopted budget
Object
Chart of account
Program
Classification of groups activities, operations, or organizational units that are directed to attainment of specific purpose
Activity
Provides data for calculating expenditures per unit activity
Activity is a specific and distinguisable line of work
Encumbrances
Recorded when resources are committed for future expenditures
Is Fund balance commitment in general fund, not restriction in general fund
DR when purchase order is approved
CR when goods are received
Governmental Funds Fixed Assets is recorded in
Government-wide statement of net assets
Appropriations
Represents total authorized expenditures for current fiscal period
Record when budget is formally created (CR)
Nonspendable current resources (e.g. inventory or prepaid)
Generally may be allocated between or among accoutning periods
May be accounted for as expenditures of the period of acquisition
Revenues Formula for Governmental Fund
Collections in the year + collections during the firs 60 days of the next year
Restricted Fund
Fund restricted for specific purpose by external parties like grantors, debtors contributors, or laws
Committed Fund
Fund results in constraints for specific purpose due to imposing restrictions by HIGH LEVEL OF GOVERNMENT
Assigned Fund
Fund with the INTEND to use for specific purpose, but are not restricted or committed
Measurable but unavailable more than 60 days after year-end reported in
Deferred inflow of resources
Statement of financial position
Governmental Funds
Assets and deferred outflows = Liabilities and deferred inflows + fund balance
Government wide F/S
Statement of Financial position
(Proprietary & Fiduciary Funds)
Assets and deferred outflows - Liabilities and deferred inflows = Net positions
Hedge accounting treatment is contingent upon
Effectiveness
Treatment of imposed nonexchange revenue transactions not available (i.e. billed, license not available)
Deferred inflow
Sales and leaseback transactions
Treatment of Gain/loss
in deferred inflow/outflow and recognized over life of the lease
Pension Liability
‘The treatment’
Expense - SIR
Deferred outflows and deferred inflows - AGE
Governmental Fund
General Fund - funds not in other categories
special revenue fund - revenues received restricted for specific project
debt service fund - fund exclusively to pay for L/T debt for GOVERNMENTAL FUND ONLY
Capital project fund - fund to build/construction
Permanent fund - resources that are legally restricted to the extent income, not principal,
Proprietary Fund
Internal Service Fund - fund received from servicing internal departments
Enterprise fund - fund that receive from user charges (external parties)
Modified Accrual Basis
Revenue should be recognized…
when it is available and measurable
F/S for Governmental Fund
- Balance sheet
2. Statement of revenues, expenditures, and changes in fund balance
F/S for Proprietary Fund
- Statement of Net position
- Statement of revenues, expenses, changes in fund position
- Statement of cash flow
F/S for Fiduciary Fund
- Statement of Fiduciary net position
- Statement of changes in fiduciary net position
AGENCY FUND DOES NOT HAVE STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
Encumbrances is not needed for which two governmental fund
Permanent and service fund
