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Governmental Accounting Chapter 9
Terms in this set (13)
What is a financial reporting entity?
Financial Reporting Entity = primary government organizations for which they're financially accountable and other organizations for which the relationships with primary government are such that exclusion would make the reporting entity's basic financial statements misleading
What organizations make up an financial reporting entity?
Primary governments and their component units
What is a primary government?
State, local or special governments
What is a component unit?
a legally separate organization for which the elected officials of the primary government are financially accountable
What criteria must be met for an entity to be considered a component unit?
1. Assets received or held by component almost entirely for direct benefit of primary government
2. the primary government, or its component units, is entitled to, or has the ability to otherwise access, a majority of the assets received or held by the component unit and these assets are significant to the primary government
3. Assets received or held by individual organization that specific primary government or component units entitled to access significant to primary government
Identify two Gov't Wide Financial Statements
1. Statement of Net Position
2. Statement of Activities
Identify three proprietary fund financial statements
1. Statement of Net Position
2. Statement of Revenues and Expenses and changes in fund net position
3. Statement of Cash Flows
identify two fiduciary fund statements
1. Statement of Fiduciary Net Position
2. Statement of Changes in Fiduciary net position
What is a blended component unit?
integral part of gov't that can be demonstrated through common governing boards, financial benefit / burden relationships, operations that primary provide services and benefits to the primary government and or component unit debit that is expected to be paid by primary government
How are blended component units reported on the financial statement?
Financial data reported as fund type and incorporated into appropriate activities column on the gov't wide financial statements
What is discreet component unit?
Not as closely aligned with a primary government as a blended government as a blended component unit. More independent in one or more areas identified when considering whether component units should be blended. Will also exist if the component unit is a legally separate tax entity.
What financial statement reconciliations are required by GASB?
1. Reconciliation of total government fund balances to total government activities net position on government wide statement net position
2. reconciliation of net change in a governmental fund balances on the statement of revenues, expenditures, and changes in fund balances to change in governmental activities net position on the government wide financial statements
Why are financial statement reconciliations required by GASB?
Reconciliations required since government fund statements and government wide statements report on two different bases of accounting
Amounts reported on statements vary and reconciling differences assists the reader in understanding why amounts on statements vary
THIS SET IS OFTEN IN FOLDERS WITH...
Governmental Accounting: Chapter 6
Accounting 405 Chapter 11
Non Profit Chapter 13
Chapter 10: Analysis of Governmental Fin…
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