Deck 5 Flashcards
(30 cards)
what is the government fund equation for its financial position? balance sheet format (not net position)
A+deffered outflows=L+deffered inflows+fund balance
where are bond issuance costs recorded?
included in the discount or premium calculation
what are the four SELF criteria for discrete vs blended presentation?
seperetly
elected government body
legally seperate
financially independent
if it does not meet the SELF test, it is dicreet not blended
how are gains and losses reported in a finance lease?
difference between fair value and cost at inception=gain/loss
ignore payment made-that is how the lease is initially recorded
what is included in governement-wide basic financial statements?
net position, activities, using accrual economic resource focus
how is a discount of a note payable presented on the balance sheet?
Service expense 5
Discount on note 1
Note Payable 6
interest expense
disc. on NP
at the end of the year=note payable face-discount at interest rate
under equity method, if the purchase price is more than fair value, how is it recorded in earnings of the parent?
if purchase price>fair value–>excess is goodwill
if book valueamortize over asset life and reduce investment account amount*%ownership/life=amount to reduce
when is revenue recognized for a conditional pledge?
never! only recognize unconditional pledge revenue
who are the primary users of financials?
external parties: lenders, creditors, investors
regulators are secondary users
what are the four fiduciary funds?
custodial
investment
private purpose
pension &other employee benefit
what are the two proprietary funds?
enterprise
internal service
how is the bond carry value affected by a discount and premium
add discount to carry amount
subtract premium from carry amount
stated rate is less than market rate
discount
interest expense will go up as time goes on and will be more than the bond holder pays
how is bond interest payable calculated?
face value*stated rate. It does not change as payments are made
how is bond interest expense recognized?
how is bond interest payable calculated?
issue date to the end of the period.
last payment date to end of period.
what type of revenues would be part of ongoing operations for a NFP hospital? (patient service revenues)
room and board fees from patients and recovery room fees
what is the measurement focus for governmental funds?
sources and uses of financial resources. Amortization would not be taken on bonds. the bond premium would be recorded in the fund that is receiving the proceeds
why are gasoline taxes for road repairs part of special revenue funds?
these are revenues that are legally restricted expenditures for specific purposes
how is a budget booked of a governmental unit?
estimated revenues x
approrpiations x
budgetary control x
when does the modified accrual method accrue for interest?
only when it is legally due. not at interim dates.
when a contribution has a specific donor-imposed restriction, how is it recorded?
if there is no variance power over resources, it is accounted for as a liability
do governmental funds or enterprise funds prepare a statement of cash flows?
enterprise have cash flows, governmental funds do not.
so issuing bonds in debt service is not cash flow
utility cash flows go in enterprise fund which do cash flow
under the indirect method, what is included in operating cash flows?
Net income add back depreciation expense add back goodwill impairment add decreases in assets subtract increases in assets add increases in liabilities subtract decreases in liabilities dividends received are already included in net income so ignore dividends paid are financing increse in AFS security is in financing
if given the estimated ending uncollectable balance, how is uncollectible accounts expense calculated after a year end adjustment?
calculate the AJE while adding the provision to the allowance account. Then take provision plus AJE to = uncollectable accounts expense.
