FAR - GASB - Introduction Flashcards Preview

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Flashcards in FAR - GASB - Introduction Deck (16):
1

Characteristics that drive Gov't acct/reporting?

- no profit motive
- lack of clear ownership
- non-exchange services (contributors of resources don't receive proportionate share of benefits)
- compliance w/laws & regulations
- formal budget process

2

Types of Gov't Entities

State & Local Govt's:
- town, cities, county, parish, state gov'ts
- "general purpose govts"

Special Purpose Govts:
- school district, transit authorities

Agencies/Commissions:
- economic development, convention bureau

3

Levels of authority

Level A: GASB statements/interpretations (officially established account principles)

Level B: 1) GASB Tech bulletins, 2) AICPA Industry Guides, 3) AICPA SOPs

Level C: AICPA practice bulletins

Level D: GASB Implementation Guides & widely recognized practices

4

differences between not-for-profit and for-profit organizations?

1) Principal mission is to provide goods and services;
2) Primary resources are exchanged through non-exchange transactions;
3) Restrictions on resources;
4) No individual ownership interests

5

true/false

One of the unique characteristics of government is its power to force involuntary financial resource contributions through taxation. No other form of organization has this power.

true

6

Purpose of GASB Conceptual Framework

Provide framework for GASB in developing/revising standards

*Concept statements are NOT authoritative guidance

7

5 Concept Statements

1) objectives of financial reporting
2) services efforts & accomplishments
3) financial reporting
4) elements of financial reports
5) service efforts & accomplishments amendments

8

Objectives of financial reporting

1) Accountability

2) Interperiod Equity - current yr resources sufficient to pay current yr services?

9

Characteristics of Financial Reporting

Timeliness
Relevance
Understandability
Comparability
Consistency
Reliability

"TRUCCR" (Trucker)

10

Service Efforts & Accomplishments

Voluntary
- service efforts (inputs) - cost of fire dept

- service accomplishments:
- Output: # fire alarms responded to
- Outcome: % of alarms responded to

- SEA info should meet TRUCCR

11

Financial Reports

Hierarchy of Reporting:
1) Recognition in basic financials
2) note disclosure
3) required supplemental info (RSI)
4) Other supplemental info (SI) (not required)

12

Elements of Financials

1) Assets
2) Liab
3) Deferred Outflow of Resources
4) Deferred Inflow of Resources
5) Net Position

13

True/False

interperiod equity is a basic component of accountability and fundamental to public administration

True

14

four financial reporting implications associated with the legally adopted annual budget

(1) expression of public policy,
(2) expression of financial intent,
(3) form of control, and
(4) it may provide a basis for evaluating performance (if the government established service efforts and accomplishment goals as part of its budget process)

15

true/false

adoption of a balanced budget supports interperiod equity because it is an attempt to ensure that the current generation of citizens does not shift the burden of paying for current-year services to future-years' taxpayers

true

16

primary users of the general purpose external financial report

1) citizens (Tax payers), 2) legislative/oversight bodies (schools), 3) Investors/creditors (bond insurers)

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