FAR 23 Flashcards
(20 cards)
How doe step general fund reports transfers to other funds
as “other financing uses” which is a form of expenditure
How does the enterprise, internal service, and pension trust report transfers to other funds
They are reported as receivables
What is a governmental fund
- A fund is the basic accounting unit and used to assist in ensuring fiscal compliance
How much bond interest will be accrued on the statement of revenue, expenditures, and changes in fund balance
NONE - uses modified accrual so No accrual
An enterprise fund is used when the governing body requires that
- user charger cover the cots s of general public services
- net income information be reported for an activity
- this is used for activities involving providing goods or services in exchange for voluntary payment s
- uses accrual accounting
Services provided by one agency to otters governmental departments on a cost reimbursement basis are accounted for in an
internal service fund -
How are loans made to commercial businesses by a development Agency classified on the statement of cashflows
- because it is the operational purpose of the governmental agency - it would be classified as operating activities
What is property tax accounted for as a revenue sources
- imposed nonexchainge revenue source
resulting from assessments imposed on non governmental entities including individuals other than assessments on exchange transactions
What are the JE when an AFS security is sold with unrealized gain /losses in OCI
The net amount of any unrealized gains an losses reported in OCI must be eliminated
If it was an unrealized loss - this would be a dr balance in AOCI this would be eliminated with a credit to OCI
dr AOCI 50
cr OCI 50
What is the JE for recording property taxes with allowance for uncollectables
dr. Property tax receivable current 600,000
cr Property tax revenue 575,000
cr allowance for uncollectables 25,000
What is required to be included in the RSI of CAFR
Budgetary comparison
- b Disclosure about infrastructure assets using the modified approach
- Other statistical data or schedules to provide additional info on significant elements of the government
What is the modified approach to recording assets
- This is when an asset is not depreciated
- Instead maintenance costs are recorded
- The government must disclose and document that the asset is being preserved as a disclosed level
How is interest revenue received by a gov. proprietary fund reported on statement of cashflows?
- In the investing sections
(this is different from GAAP) This is because there is a difference between the purpose and function between government and private
What are all included in estimated revenues in a accordance with modified accrual accounting
- Property Taxes
- licenses and permits
- intergovernmental events
Transfers from otters funds are considered “operating transfers” and are debited as estimated other financial sources
What basis of accounting is the Budgetary Comparison Schedule prepared under?
They are prepared under the same basis of accounting that was used to prepare the fund’s budget,
If the general funds budget was prepared on cash basis - the comparison would be on the cash basis
If you enter into a capital lease for equipment during the year - how do you report the equipment on the government wide statements
- as a general capital asset -
gov wide are prepared on accrual basis - so the asset would reported just like GAAP
What are the objectives of financial reporting of state and local governmental agencies
- fulfill their duty to be publicly accountable
- assist users in evaluating the operating results of the gov
- assist users in assessing the gov ability to meet its obligations as they come due
(determining the cost of providing the services is not an objective of GASB)
An enterprise fund would be used when the governing body requires that
I. Accounting for the financing of an agency’s services to other government departments be on a cost-reimbursement basis.
II. User charges cover the costs of general public services.
III. Net income information be reported for an activity.
II
and
III
How are employer contributions to a governmental pension fund recorded in the fund financial statements?
- They are recorded as current expenses
- so only the annual required contribution to the pension would be recorded - not benefits paid or any unfunded actuarial liability
What is fund accounting
It segregates financial resources into set son self-balancing accounts with each set controlled by a government entity
- each has a specific mission and legal restrictions on the use of the resources
