Governmental Accounting 2019

Transcription

1 Governmental Accounting 2019 Steven M. Bragg

2 Chapter 1 Governmental Accounting Overview... 1 Learning Objectives... 1 Introduction... 1 Sources of Governmental Accounting Standards... 1 Information Sources... 1 Application of Governmental Accounting Standards... 2 Legal Provisions... 2 Goals of a Governmental Accounting System... 3 Fund Accounting Systems... 3 Types of Assets... 4 Types of Liabilities... 4 Budget Issues... 4 Financial Reports... 5 Summary... 5 Review Questions... 6 Review Answers... 7 Chapter 2 Fund Accounting... 9 Learning Objectives... 9 Introduction... 9 Fund Accounting Overview... 9 Definition of a Fund... 9 Governmental Funds... 9 Proprietary Funds Fiduciary Funds Fund Contents Interfund Loans Evaluation Periods Special Questions Related to Funds Summary Review Questions Review Answers Chapter 3 Basis of Accounting and Measurement Focus Learning Objectives Introduction Basis of Accounting Cash Basis Accrual Basis Modified Accrual Basis in Governmental Fund Statements Revenue Recognition Expenditure Recognition Measurement Focus Accrual Basis Reporting in Government-Wide Financial Statements Accrual Basis in Proprietary Fund Statements Revenue Recognition When Right of Return Exists Disclosures Summary Review Questions Review Answers Chapter 4 Reporting Capital Assets Learning Objectives Introduction i

3 Valuation of Capital Assets Capitalization Thresholds Networks and Subsystems Capitalization of Interest Costs Capitalization Rate Capitalization Period Impact of Tax-Exempt Borrowings When to Capitalize Expenditures Depreciation of Capital Assets Depreciation Methods Intangible Assets Works of Art and Historical Treasures Asset Transfers Impairment of Capital Assets Impairment Losses under the Modified Approach Capital Asset Disposal Infrastructure Asset Recordkeeping Reporting of Capital Assets Disclosure of Capital Assets General Disclosures Disclosure of General Capital Assets Disclosure of Capital Assets of Proprietary Funds Disclosure of Capital Assets of Fiduciary Funds Disclosure of Depreciation Disclosure of Accumulated Depreciation Disclosure of Capitalized Interest Disclosure of Assets Not Being Depreciated Disclosure of Impairment Summary Review Questions Review Answers Chapter 5 Reporting Liabilities Learning Objectives Introduction Reporting Long-Term Liabilities Current Liabilities Short-Term Obligations Modified Accrual Recognition of Liabilities and Expenditures Debt Service Funds Contingent Liabilities Additional Liability Reporting Topics Disclosure of Liabilities Summary Review Questions Review Answers Chapter 6 The Budget and Budgetary Accounting Learning Objectives Introduction Budgetary Period Budget Types Budgetary Control Encumbrances Summary Review Questions Review Answers ii

4 Chapter 7 Common Accounting Transactions Learning Objectives Introduction Capital Asset Transactions Asset Purchase Transaction Depreciation Transaction Asset Sale Transaction Debt Transactions Initial Debt Transaction Debt Payments Interest Accrual Debt Service Fund Transactions Encumbrance Transactions Interfund Transactions Inventory Usage Reimbursement Transactions Summary Review Questions Review Answers Chapter 8 Classification and Terminology Learning Objectives Introduction Interfund Activity Reporting of Internal Activities and Balances Reporting of Internal Service Fund Balances Classifications within the Statement of Net Position Current Assets Allowances Current Liabilities Classifications within Governmental Fund Financial Statements Other Long-Term Debt Transactions Capital Asset Sales Revenues Expenditures Classifications within the Government-Wide Statement of Activities General Expenses Revenues Special and Extraordinary Items Right of Offset Reporting Net Position Governmental Fund Reporting Disclosures Summary Review Questions Review Answers Chapter 9 The Financial Reporting Entity Learning Objectives Introduction Accountability The Financial Reporting Entity Primary Governments Component Units Summary Review Questions Review Answers iii

5 Chapter 10 Comprehensive Annual Financial Report Learning Objectives Introduction Components of the Comprehensive Annual Financial Report Introduction to the CAFR Management s Discussion and Analysis Basic Financial Statements Government-Wide Statement of Net Position Statement of Activities Basic Financial Statements Fund Financial Statements Major Funds Reconciliation to Government-Wide Statements Required Financial Statements Governmental Funds Required Financial Statements Proprietary Funds Required Financial Statements Fiduciary Funds Comparative Financial Statements Required Supplementary Information Combining Statements and Individual Fund Statements and Schedules Statistical Tables Major Component Unit Information Account Classification Rules Disclosures Sample Comprehensive Annual Financial Report Summary Review Questions Review Answers Chapter 11 Additional Financial Reporting Considerations Learning Objectives Introduction Related Party Transactions Subsequent Events Going Concern Considerations Prior Period Adjustments Accounting Changes and Error Corrections Change in Accounting Principle Change in Accounting Estimate Change in Reporting Entity Summary Review Questions Review Answers Chapter 12 Notes to Financial Statements Learning Objectives Introduction Notes Overview Significant Accounting Policies Additional Disclosures Disclosure Sequence Notes Minimization Sample Disclosure of Accounting Policies Sample Disclosure of Assets and Liabilities Sample Disclosure of Contingencies Sample Disclosure of Risk Management Sample Disclosure of Subsequent Events Summary Review Questions Review Answers iv

6 Chapter 13 Budgetary Reporting Learning Objectives Introduction Overview of Budgetary Reporting Additional Reporting Sample Budgetary Comparison Reports Budgetary Control Summary Review Questions Review Answers Chapter 14 Cash Flows Statements Learning Objectives Introduction Reporting Requirements Report Contents Cash and Cash Equivalents Gross and Net Cash Flows Negative Cash Balances When Cash Flow Occurs Cash Flows from Operating Activities Cash Flows from Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities Cash Flows from Investing Activities Specific Cash Flow Classifications Information about Noncash Activities Sample Statement of Cash Flows Summary Review Questions Review Answers Chapter 15 Segment Information Learning Objectives Introduction Segment Reporting Sample Segment Reporting Summary Review Questions Review Answers Chapter 16 Reporting Entity and Component Unit Learning Objectives Introduction The Financial Reporting Entity Defined The Component Unit Defined Major Component Unit Information Blending Component Units Equity Interests in Component Units Intra-Entity Transactions Reporting Periods Note Disclosures Presentation Issues Summary Review Questions Review Answers v

7 Chapter 17 Statistical Section Learning Objectives Introduction Overview of the Statistical Section General Content Focus of the Data Limitations Financial Trends Information Net Position Changes in Net Position Revenue Capacity Information Revenue Base Information Revenue Rates Information Principal Revenue Payers Information Property Tax Levies and Collections Debt Capacity Information Ratios of Outstanding Debt Direct and Overlapping Debt Debt Limitations Pledged-Revenue Coverage Additional Debt Reporting Topics Demographic and Economic Information Demographic and Economic Indicators Principal Employers Operating Information Government Employees Operating Indicators Capital Assets Sources, Assumptions, and Methodologies Summary Review Questions Review Answers Chapter 18 Fair Value Measurement Learning Objectives Introduction Fair Value Definition Fair Value Principles Characteristics of the Asset or Liability Markets Transaction Costs Bid-Ask Spread Valuation Techniques Market Approach Cost Approach Income Approach Fair Value Hierarchy Level 1 Inputs Level 2 Inputs Level 3 Inputs Measurement Principles Disclosures Summary Review Questions Review Answers vi

8 Chapter 19 Claims Accounting Learning Objectives Introduction Risk Transfers Claim Recognition Discounting Annuity Contracts Risk Financing Activities in an Internal Service Fund Participation in Public Entity Risk Pools Insurance Transactions Claims-Made Policies Retrospectively Rated Policies Policyholder Dividends Contractual Actions Contingencies Presentation Issues Disclosures Summary Review Questions Review Answers Chapter 20 Landfill Closure and Postclosure Costs Learning Objectives Introduction Operating Methods Estimated Total Current Cost of MSWLF Closure and Postclosure Care Reevaluations Proprietary Fund Reporting Governmental Fund Reporting Government-Wide Financial Statement Reporting Changes in Estimates Assets Placed in Trust Responsibility Assumed by a Different Entity Disclosures Summary Review Questions Review Answers Chapter 21 Leases Learning Objectives Introduction Lease Term Lessee Lease Accounting Lease Asset Lessor Lease Accounting Initial Direct Costs Lease Receivable Deferred Inflow of Resources Accounting for Short-Term Leases Contracts that Transfer Ownership Additional Leasing Topics Presentation Disclosures Lessee Disclosures Lessor Disclosures Summary Review Questions Review Answers vii

9 Chapter 22 Nonexchange Transactions Learning Objectives Introduction Overview of Nonexchange Transactions Accounting for Nonexchange Transactions Requirements and Restrictions Reimbursements Derived Tax Revenues Imposed Nonexchange Revenues Government-Mandated and Voluntary Nonexchange Transactions Donations of Capital Assets Subsequent Breaching of Eligibility Requirements Nonexchange Revenues Administered by another Government Revenue Recognition in Governmental Fund Statements Pass-Through Grants On-Behalf Payments Disclosures Summary Review Questions Review Answers Glossary Index viii