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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
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.
- Spring '13