F9 Flashcards
What are required reporting for general purpose governmental units?
The GASB 34 presentation. MD&A, government-wide F/S, Fund F/S(reconciliation), Notes to F/S, Required Supplementary Information, other supplementary info(optional).
What’s Comprehensive Annual Financial Report?
It’s the optional way to report for governmental units, not the GAAP requirement. It adds introductory section and statistical section to the required reporting by GASB 34.
What conditions must be met for a special(not general) purpose local government (hospital, school district) to be a primary government entity, instead of a component unit?
Has a SEparately-elected governing body; is Legally separete and Fiscally independent of ohter state or local government. (SELF)
General purpose government, special purpose G, primary G, component units?
General purpose G are states, cities, towns etc, they’re all primary G, which is the nucleus of the financial reporting entity. Special purpose G may be a primary ifSELF if meet the conditions or component units of the primary. Non-governmental (private) not-for-profit entities could be componet units too. Primary G is financially accountable for its component units.
Two ways of reporting component units?
Blended- not a separate legal entity OR boards are the same OR serve the primary almost exclusively. Combined presentation, no separate column.
Discrete(most common)-separate column, overview of the entity based on financial accountability is provided.
Which funds are required to disclose reconciliation to government-wide F/S?
major funds in GRaSPP. internal Service fund net positon and net income should be added to the GRaSPP to get the government-wide.
Where is the reconciliation of fund F/S to government-wide F/S done?
in the face (at bottom) of fund F/S.
Is Statement of cash flow required for government-wide F/S reporting?
No. Only statement of net position(B/S) and Statement of activities (I/S)
What’s the midified approach of capitalizing assets by governments?
For infrastructure assets, if the government’s asset management system is adequate and up-to-date and documentation of preservation is properly done, government may choose to expense ongoing infrastructure expenditures, and not to capitalize and depreciate. Schedules derived from the asset management system and documentation are required.
For government accountting, how to treat the change between required approach and modified approach for capital assets?
Treat as a change in estimate.
Should artwork and historical treasures be capitalized by government and not-for-profits?
Normally yes, but may have the alternative not to if it’s not held for financial gain, is preserved, and can not be sold to finance anything other than another collection.
These contributions are not recorded on F/S for NFPs.
What are the columns for government-wide B/S? aka, how are the assets, liabilities and net positions (line items) separated for more details? Which funds are included?
Primary government and component units. Primary includes governmental activities -GRaSPP+S fund, and business type activities- E fund.
How are program revenues grouped (colums) on government-wide I/S for each line items? Net revenue (Expense)?
charges for Service, Operating grants and contributions, Capital grants and contributions. Net revenue (Expense) is the same as B/S-GRaSPP+S, E, and component units.
Are interfund and internal transactions eliminated when making government-wide F/S?
YES.receivables and payables are netted on B/S. internal transactions that artificially “double up” on activity should
be elimnated on I/S(not all interfund transactions are artifical, e.g. utilities, or between primary and components or fiduciary) . When eliminated, disclosure still required.
Fund F/S (not g-wide) should be reported by fund type? GRaSPP vs SE vs PAPI?
NO. GASB 34 require reporting by major fund rather than type. Major-10% test for within the GRaSPP or E funds. 5% test for GRaSPP+E. General fund is always major, S fund is not considered here.
