Let s look at how the term is used. Chapter 2 Granof-4e 3

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1 Chapter 2 1

2 Chapter 2 2

3 Let s look at how the term is used Chapter 2 Granof-4e 3

4 May refer to working capital (current net assets) May refer to cash or investments available (bond sinking fund) May have other definitions Chapter 2 Granof-4e 4

5 BALANCE SHEETS June 30, Assets Current assets: Cash and cash equivalents $ 6,076 $ 10,339 Short-term investments (including securities pledged as collateral of $1,540 and $2,491) 25,371 13,323 Total cash, cash equivalents, and short-term investments 31,447 23,662 Accounts receivable, net of allowance for doubtful accounts of $451 and $153 11,192 13,589 Inventories Deferred income taxes 2,213 2,017 Other 3,711 2,989 Total current assets 49,280 43,242 Property and equipment, net of accumulated depreciation of $7,547 and $6,302 7,535 6,242 Equity and other investments 4,933 6,588 Goodwill 12,503 12,108 Intangible assets, net 1,759 1,973 Deferred income taxes Other long-term assets 1,599 1,691 Total assets $ 77,888 $ 72,793 Liabilities and stockholders equity Current liabilities: Accounts payable $ 3,324 $ 4,034 Short-term debt 2,000 Accrued compensation 3,156 2,934 Income taxes 725 3,248 Short-term unearned revenue 13,003 13,397 Securities lending payable 1,684 2,614 Other 3,142 3,659 Total current liabilities 27,034 29,886 Long-term debt 3,746 Long-term unearned revenue 1,281 1,900 Other long-term liabilities 6,269 4,721 Commitments and contingencies Stockholders equity: Common stock and paid-in capital shares authorized 24,000; outstanding 8,908 and 9,151 62,382 62,849 Retained deficit, including accumulated other comprehensive income of $969 and $1,140 (22,824) (26,563) Total stockholders equity 39,558 36,286 Chapter 2 Total liabilities and stockholders equity $ 77,888 $ 72,793 Granof-5e 5

6 A fiscal and an accounting entity with a self-balancing set of accounts (p. 717) In other words, a fund is an entity with its own set of books (i.e., chart of accounts, general journal, general ledger, trial balances, and financial statements) Assets = Liabilities + fund balance Chapter 2 Granof-4e 6

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9 We ll come back and talk about definitions later Chapter 2 Granof-5e 9

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12 Required for governmenttype activities For government-type funds, fund balance are classified as nonspendable, restricted, committed, assigned and unassigned (new GASB 54) Optional Reporting is based on net asset classes which could be interpreted to be separate types of funds Net assets are reported according to DONOR restrictions on use of assets Chapter 2 12

13 Restrictions are externally imposed by law, creditors, or the like Committed FB is based on formal action by highest decision making authority Assigned FB is based on INTENT to use for specific purposes Net assets are reported according to DONOR restrictions on use of assets Temporary Permanent Designated NA are part of unrestricted net assets and comes from action of the board of trustees (roughly equivalent to GASB s assigned & committed FB) Chapter 2 13

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16 Core governmental services like police and fire protection, streets, highways, etc. (see Chapters 3-6). These activities are accounted under governmental funds. Public utilities, toll roads and toll bridges, airports (See Chapter 9). These activities are accounted under proprietary funds. Sometimes known as Trust & Agency Funds. Accounts for resources for which the government is acting in a trustee capacity (see Chapter 10). These activities are accounted under fiduciary funds. Chapter 2 16

17 Pension (and other employee benefit) Investment Trust Funds Private purpose Trust Funds Chapter 2 Granof-5e 17

18 Government-wide statements (GASB 34) Governmental fund statements Proprietary fund statements Fiduciary fund statements FASB Not-for-profit accounting (funds are optional) Measurement Focus Economic resources Current financial resources Economic resources Economic resources Economic Resources Basis of Accounting Accrual Modified accrual Accrual Accrual Accrual Chapter 2 18

19 Restricted for use in future time periods Restricted for a specific purpose Chapter 2 19

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