Chap017-baker 11

Chap017-baker 11 - Chapter 17 - Governmental Entities:...

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Chapter 17 - Governmental Entities: Introduction and General Fund Accounting 17-11 C17-6 Examining Deposit and Investment Risk Disclosures of a Governmental Entity ( Note to the Instructor: Students may become frustrated because they may feel that the information presented in the summaries for GASB 40 and GASB 3 are not enough to fully understand the risk disclosures required by these two standards. This case does not require an intensive knowledge, but rather a general knowledge of the required risk disclosures. Then the case provides students with the opportunity to see the standards in a real government annual report, especially if they select a local governmental entity with which they are quite familiar, e.g., their home city or the city in which the university is located.) a. The deposit and investment risks stated in the summary are: (1) custodial credit risk; (2) credit risk, (3) concentration of credit risk, (4) interest rate risk, and (5) foreign currency risk. GASB 3 and GASB 40, which your students probably would not have, define these as follows:
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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.

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