Week 3 team B assignmen govt and nont-1

Week 3 team B assignmen govt and nont-1 - 3- This is an...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Week 3 team B assignment Problem 4-16 1- This transaction is voluntary non exchange transaction involving an asset recognition requirement. Upon receipt of the land, the government needs to recognize the asset during the period in which it receives it for $ 4 M. GASB Statement 33 2- This is an exchange transaction in which the college of pharmacy receives a grant of $2 M from a drug pharmacy in exchange for research of approximately equal value and the results be given back to the donors. Therefore, the college needs to recognize revenue on a full accrual basis either by percentage-of-completion or completed-contract. P.192 para.5
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 3- This is an imposed non exchanged transaction with time restrictions. The government can only use this fund only when the developer starts its work. In this case the city can recognize the revenue for the period in which it intends to use the funds. Upon reception, it can defer the revenue. 4- This is an exchange transaction. The reason this is an exchange transaction is because the license fee is used for health inspections. The revenue is recognized when the cash is received. 5- This is a exchange transaction because the fees should be recognized as revenue over the period covered....
View Full Document

Ask a homework question - tutors are online