Deriving government wide financial statements

Question 1

TO REMEMBER

Answer 1

CAN CPAS RIDE or SIT

Question 2

Reconciling Government fund balance sheet to Government wide statement of Net Position

Answer 2

Measurement focus difference
C - add Capital assets
A - subtract Accumulated depreciation
N - subtract Non-current liabilities (LTD)

Difference in basis of accounting

• Eliminate deferred inflows - ass them
• subtract accrued liability for interest payable

Consolidated entries
S - add internal Service fund net position
S for SIT and IT means interfund transfers

CAN S(IT)

Question 3

Reconciling income statement

Answer 3

Measurement focus difference
C - add Capital outlay expenditures
P - add Principal payment on debt
A - subtract book value of capital Assets disposed during period - net of gain
S - subtract debt proceeds shown in other financing Sources

Basis of accounting difference
R - add recognized Revenues that are measurable but “unavailable”
I - accrue Interest expense
DE - record Depreciation Expense

Consolidation entries
S - add internal Service fund change in net position

CPAS RIDE S(IT)