Flashcards in F9: Governmental Accounting (Part B) Continued Deck (22)
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1
What 4 things should be included in the MDA?
1- Description of the financial statements
2- Identity of primary government and component units
3- Economic conditions and outlook
4- Major initiatives
2
Types of things in the description of the financial statements in MDA
-An easily readable analysis
-Condensed financial statement info
-Analysis of overall position and results of ops
-Analysis of balances and transactions of individual firms
-A description of the significant assumptions
3
What 2 statements are included in the set of government-wide financial statements?
1- Statement of Net Position
2- Statement of Activities
4
What focus and method of accounting is required for both statements?
-Economic resources measurement focus
-Full accrual basis of accounting
5
Statement of Net Position Format
Assets
-Liabilities
= Net Position
6
Net Position is divided into what 3 components?
RUN
R- Restricted
U- Unrestricted
N- Net investment in capital assets
7
The term infrastructure assets refers to:
Streets, bridges, gutters, and other assets of the government
8
How are infrastructure assets reported?
As capital assets
9
2 approaches for recording capital assets
1- Required Approach
2- Modified Approach
10
Required approach definition
All capital assets are recorded and depreciated
11
Modified approach definition
-Infrastructure assets that are part of a network are not required to be depreciated
-Ongoing infrastructure expenditures are typically reported as expenses
12
Governments may use the modified approach IF they meet these two requirements:
1- Government's asset management system meets certain conditions
2- Government documentation should include data on asset preservation
13
What conditions included in requirement one of the modified approach:
-Inventory is up-to-date
-Summarized condition assessment is done
-Each year, estimate is made of amount necessary to maintain and preserve the eligible infrastructure assets
14
What conditions included in requirement two of the modified approach:
-A complete condition assessment is done at least ever 3 years
-reasonable assurance
15
As a general rule, governments should _______ works of art, historical treasures and similar assets
Capitalize at historical cost or fair value at date of donation
16
Regardless of whether collection items are donated, governments may elect to not capitalize if ALL of these 3 conditions are met:
1- Collection is held for public exhibition
2- Collection is protected
3- Collection is subject to an organizational policy
17
In government-wide financial statements, ______ are not included
Fiduciary funds
18
What is reported on the "Statement of Activities"?
Revenues & expenses using the full accrual basis
19
The net expense/revenue for each function is classified into one of 3 categories:
1- Primary governmental activities (GRaSPP +S)
2- Primary business-type activities (E, no PAPI)
3- Component units
20
3 Program Revenue Category Types
"SOC" away these revenues
S- charges for Services
O- Operating grants and contributions
C- Capital gains and contributions
21
Internal transactions that artificially "double up" on activity should be ________
Eliminated
22
