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Unformatted text preview: receivable with a credit to a deferred revenue in the period prior to the actual collection of the interest. In addition, the city should make an adjusting journal entry at each balance sheet date to recognize any adjustments required for changes in the fair value of the investments. Investment earnings are reported in the revenues section of the operating statement. f. GASB 33 specifies that this voluntary nonexchange transaction, with its time restriction and eligibility requirements, should be recorded as an asset when the applicable eligibility requirements are met or the resources are received, whichever is first. Under the modified accrual basis of accounting, revenues should be recognized when all applicable eligibility requirements are met and the resources are available. Prior to that, the community may recognize a credit for deferred revenues if the resources have been received....
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This note was uploaded on 10/09/2011 for the course ACC 253 taught by Professor Strimling during the Fall '11 term at Harper.
- Fall '11