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Chapter 1 - Environment and Characteristics

Gasb statements interpretations which are gasb b c d

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Unformatted text preview: ssets reverting to government government Power to enact and enforce a tax levy Ability to issue tax exempt debt SLG GAAP Hierarchy SLG A. GASB Statements & Interpretations, which are GASB B. C. D. E. periodically incorporated into the Codification Codification GASB Technical Bulletins and AICPA Audit Guides and GASB SOPs if made applicable to SLGs and cleared by GASB GASB Positions of GASB EITF (does not currently exist) and Positions AICPA Practice Bulletins if made applicable to SLGs and cleared by GASB and GASB staff Implementation Guides (Q&As) and widely GASB accepted practice accepted Other accounting literature Typical Activities of a SLG Typical Governmental activities – unique to SLGs – – – – Police and fire protection Education Social Services Courts Business-type activities – similar to private Business-type sector operations sector – Utilities – Golf Courses – Airports Purpose of Governmental Activities Purpose Provide goods and services that all Provide constituents need regardless of ability to pay for goods and services pay Sources of Financial Resources Sources (not found in private sector) Taxes: property taxes, sales taxes, and Taxes: income taxes income Intergovernmental revenues: from other Intergovernmental governments governments Licenses & permits Fines & forfeitures Debt proceeds (typically not used for Debt not operations) operations) Resource Allocation Mechanisms Resource Restrictions placed by providers: typical of Restrictions grantors, taxes for specific purposes, & debt proceeds debt Budget – allocates resources to functions Holding public officials accountable for Holding actions actions Reporting Issues & Problems Reporting Demonstrate compliance with restrictions on use Demonstrate of financial resources of Budgetary reporting Impact of restrictions on revenue recognition Difficulty in measuring effectiveness and Difficulty efficiency of operations efficiency Opportunity to hide or disguise availability of Opportunity resources resources Tax and debt limits Impact of materiality of reporting certain actions Financial Report Uses Financial Comparing results with legally adopted Comparing budgets budgets Assessing financial condition and results Assessing of operations of Assisting in determining compliance with Assisting finance-related laws, rules & regulations finance-related Assisting in evaluating efficiency & Assisting effectiveness effectiveness Purposes of Business-Type Activities Purposes Provide same types of services as found Provide in private sector in Charge fee for services received Separate, self-sufficient operations Issues in Business-Type Activities Issues Relationship between services received Relationship and resources provided by consumer and Revenue-producing capital assets Similarly designated activities Nature of political process Budgets and fund accounting Financial Reporting Objectives of Business-Type Activities Business-Type Enable users to assess accountability Provide information about operating Provide results for the period results Provide information to assess level of Provide services provided services...
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