Recipients should recognize revenues from property taxes, net of estimated refunds and estimated uncollectible amounts, in the period in which the taxes are levied, even if the enforceable legal claim arises or the due date for payment occurs in a different period. b.All other imposed nonexchange revenues should be recognized in the same period that the assets are recognized unless the enabling legislation includes time require-ments. If so, revenues should be recognized in the period when the resources are required to be used or when use is first permitted. 4.Government-Mandated Nonexchange TransactionsGovernment-mandated nonexchange transactions occur when a government at one level provides resources to a government at another level and requires that government to use the resources for a specific purpose. Intergovernmental grants fall into this category. There are often eligibility requirements, con-ditions established by legislation or the provider, that are required to be meet before a trans-action (other than cash or other assets in advance) can occur. Until those requirements are met, the recipient does not have a receivable, the provider does not have a liability, and the recognition of revenues or expenses for resources transmitted in advance should be deferred. Recipients recognize assets and revenues when all eligibility requirements have been met and the resources are available. Providers recognize liabilities and expenses using the same criteria. Eligibility requirements include time requirements. Purpose restric-tions result in restricted assets until resources are used for the specified purpose. 5.Voluntary Nonexchange TransactionsVoluntary nonexchange transactions result from legislative or contractual agreements, but do not involve an exchange of equal value. Certain grants, entitlements, and donations are classified as voluntary nonexchange transactions. Both parties may or may not be governmental entities. Specific recognition criteria are the same as those for government-mandated nonexchange transactions. 6.Continuing AppropriationsIf distributions from a provider government are authorized by continuing appropriations (involving no further legislative action), the recipient governments can use any reasonable estimate to accrue revenues. Chapter 19: Page 19-4. Replace the second sentence of the first main paragraph of section I.B titled “General Fund” with the following: “This fund accounts for all resources that are not required to be accounted for in other funds; in essence, it accounts for all unrestricted resources.” Chapter 19: Page 19-9. Replace section I.F titled “Permanent Funds” with the following (Exhibit 6 stays): F. Permanent Funds Used to account for nonexpendable resources that may be used to generate and disperse money to benefit the reporting entity or its citizens. The name comes from the purpose of the fund; a sum of equity used to permanently generate payments to maintain some financial obligation. A fund
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