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Unformatted text preview: t assets. 9-9. Chapter 9 provides a list of the items requiring reconciliation when going from the
modified accrual to accrual basis of accounting. Students should be able to provide
examples related to each of the nine items identified in Chapter 9. The use of a state or
local government’s CAFR (see www.gasb.org/new/index.html, then Statement 34) will
help students provide examples. 9-10. OCBOA stands for other comprehensive basis of accounting. These bases are nonGAAP, and for governments generally include cash, modified cash, or regulatory basis of
accounting. Governments may use OCBOA rather than GAAP if they believe the 9-3 Chapter 09 - Financial Reporting of State and Local Governments Ch. 9, Answers, 9-9 (Cont’d) OCBOA makes it easier for management to maintain and prepare financial reports, makes
it easier for all users to understand, or is less costly than GAAP. An audit opinion must
be modified to reflect that OCBOA rather than GAAP was used (see Chapter 12).
Solutions to Ca...
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This note was uploaded on 05/20/2010 for the course ACCOUNTING 580 taught by Professor Waymire during the Spring '10 term at Northern Virginia.
- Spring '10