Chapter 11 ppt

Ndsrecorded asrevenues

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Unformatted text preview: cover some losses Amounts set aside should be actuarially determined Consolidating Risk Financing Activities Consolidating Risk Financing Activities GASB Statement #10 gives governments two options: General Fund Internal Service Fund General Fund General Fund All claims and judgments recorded in GF when paid or due Remainder is recorded in GLTL accounts Amounts charged to other funds recorded as reduction of expenditures – reimbursements, not revenues May not accumulate reserves for catastrophic losses Internal Service Fund Internal Service Fund All claims and judgments recorded in ISF when incurred – may be current or long­ term liability GLTL accounts are not involved Amounts charged to other funds recorded as revenues May accumulate reserves for catastrophic losses Requirements in Using ISFs Requirements in Using ISFs Recognize all claims & judgments liabilities & expenses in ISF Charge other funds amounts that are reasonable and equitable – preferably actuarially based – so that ISF revenues and expenses are approximately equal Accumulated net ass...
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This note was uploaded on 02/22/2013 for the course ACCT 324 taught by Professor Jones during the Spring '13 term at Texas A&M.

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