GOV-Non exchange revenue transactions Flashcards
Which of the following items is an example of imposed nonexchange revenue for a governmental entity?
groups nonexchange revenues into four different categories: derived tax revenues, imposed nonexchange revenues, government-mandated nonexchange transactions, and voluntary nonexchange transactions. Property taxes are an imposed nonexchange revenue because they are levied or imposed by government on nongovernmental entities and they are not assessments on exchange transactions.
Which of the following items is an example of derived nonexchange revenue for a governmental entity?
Income and sales taxes are derived tax revenues as they are assessments imposed on exchange transactions. Other examples are sales taxes, personal and corporate income taxes, and motor fuel taxes.
Which of the following items is an example of voluntary nonexchange revenue for a governmental entity?
A federal grant would be either a voluntary or mandated nonexchange transaction depending on the terms of the grant.
The Dunstown County general fund received a notice of a federal grant award for an expenditure-driven (reimbursement) grant in the amount of $1,000,000. Included with the notice was an advance of $250,000. During the year, the County incurred $400,000 of qualifying eligible grant expenditures, and no additional money had been received from the grantor.
What would be the amount of intergovernmental receivables reported by the general fund at the close of the fiscal year?
The receivable would equal the difference between the amount of the advance and the revenues of $400,000 (the amount spent on qualifying expenditures).
Revenues $400,000
Less advance received (250,000)
———
Intergovernmental receivable $150,000
Halderman County levies an imposed nonexchange form of tax in the year prior to the year of its intended collection and use. An enforceable legal claim does not arise until the period after the period of its intended collection and use. The following facts apply:
•On September 1, 20X1, the county levied $2 million of tax for FY 20X2—50% of the tax is due on January 15, 20X2, and the remainder is due July 15, 20X2.
•It is estimated 5% of the levy will be uncollectible.
•An enforceable legal claim for the September 1, 20X1, levy does not attach until January 15, 20X3.
•It is estimated 90% of the September 1, 20X1, levy will be collected during the period January 1, 20X2, through February 28, 20X3. The balance will be collected at a later date, or go uncollected.
•The County uses an “availability period” equal to two months following the close of the fiscal year, and has a fiscal year-end of December 31.
How much revenue would be reported at the fund level in 20X1?
Governmental entities should recognize revenues from property taxes, net of estimated refunds and estimated uncollectible amounts, in the period for which the taxes are levied, even if the enforceable legal claim arises or the due date for payment occurs in a different period. All other imposed nonexchange revenues should be recognized in the same period that the assets are recognized unless the enabling legislation includes time requirements. If so, revenues should be recognized in the period when the resources are required to be used or when use is first permitted.” (GASB N50.115)
The year taxes are levied is 20X1 for use in 20X2. The due dates for payment of the taxes are January 15, 20X2, and July 15, 20X2. With the schedule of payments, no revenues are recognized in 20X1. (GASB N50.115)
Answer: revenue in 2001 S/B zero as cash will arrive in 2002. In which 1.8MIL revenue recognized in 2002. Now on the entiy wide level revenue in 2002 is 1.9MIL.
