chapter 2 pwer point 456

chapter 2 pwer point 456 - State and Local Government...

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Unformatted text preview: State and Local Government Accounting Principles Chapter 2 Learning Objectives Discuss major aspects of government financial reporting model Define fund and examine broad categories Identify MFBA found in financial statements Analyze effects of transactions Discuss budgetary accounting & reporting Understand fund categories and types of funds found in each category Understand basic financial reporting requirements GASBS 34: Basis for Financial Reporting Issuance in 1999 marked a major change in governmental financial reporting Created dual perspective reporting: Government-wide financial statements, using accrual accounting Fund financial statements, using other bases of accounting Basic Financial Statements: Overview Notes to the Financial Statements Fund Financial Statements Fiduciary Funds Proprietary Funds Governmental Funds 7 - 8 Financial Statements Links [Worksheets] Reconciliations (Explanations) Government-wide Financial Statements Total Primary Government Business-Type Activities Governmental Activities 2 Financial Statements Minimum Requirements for External Financial Reporting: The GASBs View Management's discussion and analysis Required supplementary information (other than MD&A) Government-wide financial statements Notes to the financial statements Fund financial statements Fundamentals of SLG Accounting & Financial Reporting 1. GAAP & legal compliance 2. Fund accounting 3. Fund categories 4. Types of funds 5. Comparative financial statement formats 6. Annual financial reporting GAAP & Legal Compliance GAAP Reporting Ensures that the financial reports of all SLGs contain the same types of financial statements and disclosures for the same types of funds and activities Requires full disclosure GAAP & Legal Compliance (continued) Legal Compliance Ranges from simple to complex requirements May be simple if budgeting on a GAAP basis More complex if cash or encumbrance budgeting is required Identifying the budgetary basis is key GAAP & Legal Compliance (continued) Reconciling GAAP & legal requirements Maintain budgetary accounting control during the year Clearly distinguish between budgetary basis from GAAP basis Prepare statements and schedules using both bases and reconcile differences GAAP Requirements Trying to assure comparability among and between governments Full disclosure may result in much more information than adequate disclosure required by FASB Fund Accounting Most distinctive feature of governmental accounting Use of fund accounting allows for Proper accounting controls Demonstrating compliance Must understand fund structure, fund model, and interrelationships between funds Definition of a fund Independent accounting entity with a self-balancing set of accounts Similar to a business accounting entity Business entity captures all reported attributes for the entire business and all its transactions...
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chapter 2 pwer point 456 - State and Local Government...

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