Share
Explore BrainMass

Govt & Not-forProfit

GASB Statement 34 is a pretty big deal in government accounting. It mandates that governments' basic financial statements include two separate but related sets of statements.
1. What are these two separate but related sets of statements? What are their different purposes? What is the fundamental difference between the two?
2. We discussed above the different financial statements required for all the types of funds. What financial statements are required for government-wide statements?
3. How does the statement of net assets differ from the balance sheet of a business?
4. How does the Statement of Activities differ from the income statement of a business?
5. Go to the GASB website and look up Concept Statement #4. First what is the difference between a GASB Statement (like Statement 34) and a Concept Statement? What does Concept Statement 4 cover? Summarize briefly and include the link to it please.
6. Let's look at the concepts of restrictions in governmental accounting (it is slightly different in NP accounting). What do we mean by "restrictions"? What are the different GASB categories of restricted net assets? To what statements do these apply?
7. Go to a CAFR. Are there any restricted accounts noted? What are they? Where are they?
8. What is the difference between reserved funds and restricted funds? The book gives some examples of reserved funds...what are they?
9. In your own words, what are internal service funds? Give examples. Look at your CAFR and make a brief statement telling us what type of internal service funds your CAFR uses.
10. Are internal funds classified the same in fund statements as in government wide statements? How are they different?

Solution Preview

" GASB Statement 34 is a pretty big deal in government accounting. It mandates that governmentsâ?¢ basic financial statements include two separate but related sets of statements.
1. What are these two separate but related sets of statements? What are their different purposes? What is the fundamental difference between the two?
The two separate but related sets of statements are the Government-wide Financial Statements and Fund Financial statements. The purpose of Government-wide Financial Statements is to report all capital assets, including infrastructure assets. The purpose of Fund Financial statements is to report additional and detailed information about the primary government activities. The fundamental difference between the two is that in Government-wide Financial Statements all capital assets including infrastructure assets are reported. The government activities are reported as an entity without reference to the underlying fund structure On the other hand in the Fund Financial statements the activities of the government during the year are reflected. Their focus is on short term accountability for governments.
2. We discussed above the different financial statements required for all the types of funds. What financial statements are required for government-wide statements?
The statement of net assets and a statement of activities;
3. How does the statement of net assets differ from the balance sheet of a business?
There are differences between the statement of net assets and the balance sheet of a business. In a statement of net assets, the liabilities are subtracted from the assets and these are presented as net assets. In a business balance sheet, the "net assets" represent the owner's equity and the breakup of the owner's equity is given. Further, in the statement of net assets the Governmental activities are separated from the business type activities and their amounts are shown separately. This is not shown in a company balance sheet. In the statement of net assets there are spate columns for total and component units. Such columns do not exist in normal business balance sheet. The restriction of net assets is shown in the statement but ...

Solution Summary

The write up gives a learned discussion on Govt & Not-for Profit

$2.19