FAR-Government Flashcards
What are the five major sections of a governmental accounting Comprehensive Annual Financial Report (CAFR)?
- Management Discussion and Analysis
- Government-wide Financial Statements
- Fund Statements
- Notes to the financial statements
- Required Supplementary Information (RSI)
In governmental accounting, what is the accounting formula in the Statement of Position?
Assets + Deferred Outflows of Resources - Liabilities - Deferred Inflows of Resources = Net Position
What two statements are presented in Government-wide Financial Statements?
- Statement of Net Position (or assets)
2. Statement of Activities
What is the net investment in capital assets?
Total of capital assets - accumulated depreciation and obligations
What is the restricted Net Position?
Restricted Assets - liabilities and deferred inflows of resources that are related to restricted assets.
What are deferred outflows?
Consumption of net assets that are applicable to a future reporting period
What are deferred inflows?
Acquisitions of net assets that are applicable to a future reporting period. An example is Grant Funds received in advance. Deferred revenue is not an example as it will be matched by an obligation.
What are the four columns in the Government Statement of Net Position?
- Governmental Activities
- Business-type activities
- Total
- Component Units
In government accounting, what are the 5 fund balance classifications?
‘Not Right Can’t All United’
- Nonspendable Fund Balance (Can’t be spent)
- Restricted Fund Balance (restricted by law or by an external party)
- Committed Fund Balance (restricted by authority)
- Assigned Fund Balance (Intended for a purpose, but is not formally restricted or committed)
- Unassigned Fund Balance (Self explanatory; only found in the General Fund; Is available for any use deemed appropriate)
Which statements are issued for Proprietary Funds?
- Statement of Net Position
- Statement of revenues, expenses, and changes in fund net position
- Statement of Cash Flows
With GASB, What are the FOUR sections of of the Proprietary Funds Statement of Cash Flows? And is in each section?
- Operating Activities
- Investing
- Non-Capital Financing
- Capital and Related Financing
- Reconciliation of operating income using the indirect method
Operating
-Direct Method is Required (No Interest or Dividends Rec’d; Similar to IFRS)
Investing
-Include Interest and Dividends Rec’d; Similar to IFRS
Non-Capital Financing
-Includes interest expense on nonsecured loans
-Transfers, grants, subsidies, and property taxes rec’d
Capital and Related Financing
-Includes interest expense on secured loans
-Includes financed purchased and sales of capital assets
What method is used to create the Operating Section of the Proprietary Funds’ Statement of Cash Flows?
Direct Method
What are the two statements issued with Fiduciary Funds?
- Statement of Fiduciary Net Position
2. Statement of Changes in Fiduciary Net Position
In Governmental Accounting, Financial Reports are used primarily to show which four things?
ACE The Financial Statements
A - Actual vs. Budget
C - Compliance with Finance-related laws, rules, and regulations
E - Efficiency and Effectiveness
F - Financial condition and results of operations
What three characteristics affect financial reporting for Governmental-type activities?
Primary characteristics
Control characteristics
Other characteristics
See Lecture 29.13
What objective is set by GASB Concept Statement #1?
Financial reporting should asset in fulfilling government’s duty to be publicly accountable and should enable users to assess that accountability.
What are the four different types of cash transfer that may take place between different funds?
Operating Transfers
Quasi-external transfers
Reimbursements
Loans
In government accounting, what is an expenditure?
How much something actually costs
In government accounting, what is an encumbrance?
(An Expenditure to be); The amount that is expected to be spent.
In government accounting, what is an appropriation?
The amount that is authorized to be spent be the budget.
How are monies spent on capital projects recorded in Fund Financial Statements?
They are expenditures. Dr. Expenditure, Cr. Cash or Voucher Payable
How are monies spent on capital projects treated and recorded in Govt wide Financial Statements?
They are capitalized. Dr. Asset Cr. Cash or Voucher Payable
Why are capital projects accounted for differently in Fund Financial Statements?
Because Fund Financial Statements do not include a net income figure.
What is the main purpose of Government-wide Financial Statements?
To report on all assets at the disposal of the government as well as all liabilities that must be paid.
In government accounting, what is a fund?
A separate quasi-independent bookkeeping system.
What are the 4 types of Required Supplementary Information (RSI) that are required by GASB?
Budgetary Comparison Schedules Information about Infrastructure Assets Claims Development Information 2 Pension Schedules *Schedule Funding Progress *Schedule of Employer Contributions