GAAP for governments 2013: interpretation and application of generally accepted accounting principles for state and local governments

816 Pages·2013·4.46 MB·English

by  Warren Ruppel

CONTENTS
Preface
About the Author
Chapter 1: New Developments
Introduction
Recently Issued GASB Statements and Their Effective Dates
Exposure Drafts
Preliminary Views
GASB Project Plan
Summary
Chapter 2: Foundations of Governmental Accounting
Introduction
Chapter Overview
Entities Covered by Governmental Accounting Principles
Overview of The History of Governmental Accounting Standards
Setting
Objectives of Governmental Accounting and Financial Reporting
Objectives of Financial Reporting
Communication Methods
Elements of Financial Statements
Hierarchy of Governmental Accounting Standards
Codification of Certain FASB and AICPA Accounting and
Financial Reporting Guidance
Summary
Chapter 3: Fund Accounting Fundamentals
Introduction
Definition of Fund and The Purpose of Fund Accounting
A Synopsis of The Various Types of Funds Used by
Governments for Accounting and Financial Reporting
A Definition of Basis of Accounting and Measurement Focus
Recognition and Measurement of Certain Fund Liabilities and
Expenditures
A Synopsis of Basis of Accounting and Measurement Focus
Used by Each Type of Fund
Summary
Chapter 4: General Fund and Special Revenue Funds
Introduction
Basis of Accounting and Measurement Focus
Nature and Use of The General Fund
Nature and Use of Special Revenue Funds
Accounting for Certain Revenue and Expenditures of General
and Special Revenue Funds
Accounting for Assets, Liabilities, and Fund Balances of General
and Special Revenue Funds
Summary
Chapter 5: Capital Projects Funds
Introduction
Basis of Accounting
Measurement Focus
When are Capital Projects Funds Used?
Revenues and Other Financing Sources
Summary
Chapter 6: Debt Service Funds
Introduction
Situations When A Debt Service Fund is Required or Desirable
Basis of Accounting and Measurement Focus
Expenditure Recognition for Debt Service Payments
Accounting for The Advance Refunding of Long-Term Debt
Summary
Chapter 7: Proprietary Funds
Introduction
Basis of Accounting and Measurement Focus for Proprietary
Funds
Enterprise Funds
Internal Service Funds
Summary
Chapter 8: Fiduciary Funds
Introduction
Agency Funds
Pension (and Other Employee Benefit) Trust Funds
Investment Trust Funds
Private-Purpose Trust Funds
Summary
Chapter 9: Financial Statements Prepared by
Governments
Introduction
Basic Financial Statements
Interfund Transactions—Fund Financial Statements
Intra-Entity Transactions—Government-Wide Financial
Statements
Reporting Deferred Inflows and Outflows of Resources
Comprehensive Annual Financial Report
Cash Flow Statement Preparation and Reporting
Summary
Chapter 10: The Importance of Budgets to Governments
Introduction
Budget Background
Which Funds of The Government Adopt Budgets?
Differences Between The Budget and GAAP
Budgetary Control
Summary
Chapter 11: Definition of the Reporting Entity
Introduction
Background
Accountability Focus
Financial Reporting Entity Defined
GASB Statement No. 61 (GASBS 61), The Financial Reporting
Entity—An Amendment of GASB Statements No. 14 and No. 34
Determining Whether Certain Fund-Raising Organizations are
Component Units—Amendment of GASB Statement 14
GASB Technical Bulletin 2004-1, Tobacco Settlement
Recognition and Financial Reporting Entity Issues (GASBTB
2004-1)
Display of Component Units
Summary
Chapter 12: Cash and Investments—Valuation and
Disclosures
Introduction
Valuation of Investments
GASB Statement 52, Land and Other Real Estate Held as
Investments by Endowments
Financial Reporting Requirements
Required Disclosures
Deposits and Investment Risk Disclosures
Nature of Securities Lending Transactions
Previous Accounting Treatment
GASBS 28’s Effect on The Balance Sheet
GASBS 28’s Effect on The Operating Statement
Pooled Securities
Disclosure Requirements
Summary
Chapter 13: Derivative Instruments
Introduction
Summary
Chapter 14: Capital Assets
Introduction
Valuation of Assets Recorded
Depreciation of Capital Assets
Disclosures Relating to Capital Assets
Service Concession Arrangements
Capitalization of Interest
Summary
Chapter 15: Debt and Other Obligations
Overview of The Accounting for Debt and Other Obligations
Demand Bonds
Advance Refundings
Bond, Revenue, and Tax Anticipation Notes
Special Assessment Debt
Pollution Remediation Obligations
Accounting for Contingencies
GASB Statement No. 58, Accounting and Financial Reporting
for Chapter 9 Bankruptcies (GASBS 58)
Sales and Pledges of Receivables and Future Revenues
Statement of Governmental Accounting Standards No. 47,
Accounting for Termination Benefits, (GASBS 47)
Summary
Chapter 16: Landfill Closure and Postclosure Care Costs
Introduction
Applicability
Municipal Solid Waste Landfills
Responsibility for Landfill Closure and Postclosure Care
Assumed by Another Entity
Disclosures
Summary
Chapter 17: Postemployment Benefits—Pension and
Other
Introduction
Scope and Applicability
Requirements for Defined Benefit Pension and OPEB Plans
Calculation of The ARC
Parameters for Actuarial Calculations, Including the ARC
Net Pension Obligation
Net OPEB Obligation
Recording Pension-Related Assets, Liabilities, and
Expenditures/Expenses
Recognition of OPEB Expenses/Expenditures, Liabilities and
Assets
Additional Guidance on Expenditure/Expense Recognition
GASB Technical Bulletin 2006-1, Accounting and Financial
Reporting by Employers and OPEB Plans for Payments from the
Federal Government Pursuant to the Retiree Drug Subsidy
Provisions of Medicare Part D (GASBTB 2006-1)
GASB Technical Bulletin 2008-1, Determining the Annual
Required Contribution Adjustment for Postemployment Benefits
(GASBTB 2008-1)
Employer Pension and OPEB Disclosures
Employers with Defined Contribution Plans
Other Provisions
Summary
Chapter 18: Compensated Absences
Introduction
Scope of GASBS 16
Basic Principle
Financial Reporting Considerations
Summary
Chapter 19: Accounting for Leases
Introduction
Accounting Basis
Other Leasing Issues for Governmental Entities
Summary
Chapter 20: Nonexchange Transactions
Chapter 21: Risk Financing and Insurance-Related
Activities/Public Entity Risk Pools
Introduction
Risk Financing and Insurance Activities of State and Local
Governments (Other Than Public Entity Risk Pools)
Accounting and Financial Reporting for Public Entity Risk Pools
Summary
Chapter 22: Pension and OPEB Plan Financial
Statements
Introduction
Pension Plan Accounting and Financial Reporting
Defined Benefit Pension Plans
GASB Statement No. 50, Pension Disclosures—An Amendment
of GASB Statements No. 25 and 27
Defined Contribution Pension Plans
Postemployment Benefit Plans Other Than Pensions
GASB 67 Requirements for Pension Plan Accounting and
Financial Reporting
Summary
Chapter 23: Educational and Other Governmental Entities
Introduction
School Districts
Governmental Colleges and Universities
Governmental Hospitals and Other Health-Care Providers
Governmental Not-for-Profit Organizations
Other Public Benefit Corporations
Summary
Appendix: Disclosure Checklist
Index