Chapter 11 ppt

Esonthistransfer specialnotesonthistransfer

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Unformatted text preview: 2,000 30,000 Equipment Internal Service Fund Equipment 30,000 Accumulated Depreciation – Equipment Revenues – Capital Contributions 12,000 18,000 Special Notes on This Transfer Special Notes on This Transfer No entry in GF since asset is not accounted for there Asset may be written down prior if fair value is less than net book value (NBV) Reclassification is a Capital Contribution in ISF – may become a transfer when government­wide statements are prepared Asset could be accounted for at NBV in ISF, but this entry is usual practice to maintain audit trail Pricing Policies Pricing Policies Typical choices Historical cost Direct cost, when other costs are insignificant ISFs usually have a monopoly, so pricing needs to be monitored closely Excessive charges must be avoided Pricing Methods Pricing Methods 1. 2. Predetermined rates – so much per page, mile, or order Charge departments based on actual cost Predetermined rates preferred because Departments need to know charges at tim...
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