Government-wide Financial Statements (F10:M4)

Question 1

the modified approach for reporting infrastructure allows the government to do what?

Answer 1

not report dep exp for eligible infrastructure assets if:

1. gov’t uses an asset management system that possesses certain characteristics
   AND
2. documents that assets are being preserved at (or above) a condition level established by the gov’t

Question 2

if the modified approach for reporting infrastructure is elected, what must the gov’t report?

Answer 2

the assessed condition of the infrastructure (updated every 3 years)
AND
the estimated annual amount to maintain and preserve the condition level established and disclosed

Question 3

in a government-wide statement of activities, what would be considered program revenue? (SOC)

Answer 3

charges (for Services)
Operating grants and contributions
Capital grants and contributions

Question 4

T or F, the government-wide statement of net position must include a distinction between governmental and business type activities.

Answer 4

T

*business type = enterprise fund

Question 5

give examples of revenues that would be considered “charges for services” (which falls under the umbrella of program revenues)

Answer 5

building permits, garbage collection, dog licenses, fines, forfeitures

Question 6

when preparing government-wide FS, how should inter fund receivables and payables between governmental and enterprise funds be reported?

Answer 6

as internal balances, which are aligned so that they sum to zero (i.e., are eliminated) on the financial statements.

Question 7

how is forfeited property that the government intends to retain recorded in the government-wide FS and how is it valued?

Answer 7

as a general capital asset in the governmental activities column of the statement of net position.

it is recorded at the lower of cost or FV

*donated property is recorded at FV

Question 8

what are the 3 net asset classifications in government-wide FS?

Answer 8

net investment in capital assets
restricted
unrestricted

Question 9

under the modified approach to capitalizing infrastructure, how are infrastructure expenditures reported?

Answer 9

as expenses except for outlays that result in additions or improvements, which would be capitalized

Question 10

which rate would be used to calculate compensated absence liability in the government-wide FS?

Answer 10

the rate in effect at the balance sheet date

Question 11

is construction period interest capitalized for governmental capital assets?

Answer 11

NO, its an expenditure