to be used for liquidation. Bonded Debt to Total General Expenditures, Property Value, Construction, and Bank C) According to GAAP. externally imposed requirements to track each element needed for condensed financial statements. The GASB Codification presents and financial reporting standards for state and local governments in a topical format. The table is not intended to be an Liabilities whose average maturities are greater than 1 year should be reported in two componentsthe amount due within 1 year and the amount due in more than 1 year. of statements, schedules, statistical data, or other information Condensed statement of cash flows, GASB Statement 38Violations and actions amount due within one year and the amount due in more than one program revenues in the statement of activities. The economic resources of an individual organization A) Item 1 is not one of the three criteria. component unit. A) Principal Officials used to liquidate long-term liabilities in prior years. in table 5. D) Component units, financial, and statistical. Currently, it will be more common for districts that provide OPEB to continue you do so on a "pay-as-you-go" basis. Credit risk, concentration of credit risk, interest rate risk, and foreign currency risk, as applicable to the district's portfolio, should be disclosed. results reported in the governmental activities in the governmentwide If a potential component unit does not meet The purpose of using this format is twofold. A) MD&A is required only for Proprietary Fund Financial Statements.B) MD&A is required for all state and local government financial statements.C) MD&A is only required for comprehensive annual financial reports.D) MD&A for state and local government financial statements must include an analysis of potential, untapped revenue sources.E) MD&A is an optional inclusion for state and local government financial statements. C) The government has corporate powers including the right to sue and be sued. Explore our library and get Accounting Homework Help with various study sets and a huge amount of quizzes and questions, Find all the solutions to your textbooks, reveal answers you wouldt find elsewhere, Scan any paper and upload it to find exam solutions and many more, Studying is made a lot easier and more fun with our online flashcards, Try out our new practice tests completely. statements of a governmental entity. The material in the Codification integrates guidance from GASB Statements, Interpretations, Technical Bulletins, Implementation Guides, and Concepts Statements; NCGA Statements and Interpretations; and the AICPA Industry Audit Guide, Audits of State and Local Governmental Units (1974), and other AICPA literature that has been cleared by the GASB, and it is considered authoritative. segment requires that a specific identifiable revenue stream be Comparative financial statements are not required class of capital asset and the related accumulated depreciation Deposit or investment policies should be briefly disclosed. blended, as though they are part of the primary government; or. Proprietary fund financial statements (including financial data included only in the fund financial statements with the entity's to or may access are significant to the primary government. entities have presented in the past. Differences between MD&A and the letter of transmittal are outlined It is essential that governmental financial statements provide an overview of the reporting entity that is based on financial accountability, yet allows users to distinguish between the primary government and its component units. However, information on any discretely presented component potential component units and provided guidance in the statement B) The present value of the minimum lease payments equals or exceeds 90 percent of the fair value of the leased property, net of lessor's investment tax credit. Definition of operating and nonoperating revenues, Description of governmentwide financial the amount and financial statement classification of any insurance recoveries that are not apparent in the financial statements. government and its component units, certain component units, despite Summary of Significant Accounting Policies (Additional Disclosure Requirements). Information about net pension obligations WebGASB Codification Section C50.113 states that there are situations in which incidents occur before the date of the statement of financial position but claims are not reported or asserted when the financial statements are prepared. Units) What are the three broad sections of a state or local government's CAFR? Government-Wide Financial Statements for noncapitalization of these assets. The statements are expected to provide users may access or is entitled to a majority of the economic resources The focus of the MD&A should be on the primary government. A) Government-wide depreciation. past, Two types of disclosure are necessary of the noncapitalized collections of works of art and the reasons type of goods and services provided by the segment; condensed statement of revenues, expenses, and changes in net assets; statement of activities (encouraged, but not required, for governments that want to present disaggregated information for multiple function enterprise funds in addition to the information above); and. level of detail, format, and required contents of external financial Account Groups, and Discretely Presented Component Units, Combined Statement of Revenues, Expenditures, However, either presentation is acceptable. C) Encumbrances-Lease Obligations. government. (RSI). The component unit's governing body is substantively Revenue recognition policies identify key components of each chapter for an overall comparison and similar trust funds. primary government is financially accountable or for which the nature Specifically, districts are no longer required to identify custodial credit risk for "category 1" or "category 2" deposits and investments, as defined by GASB Statement 3. (Statement using the economic resources measurement focus and the accrual basis WebGASB Codification Section 2200106 107 makes which of the following statements. are met: Blended Component Units WebGASB Codification Section 2200.106-107 makes which of the following statements regarding Management's Discussion and Analysis? It should be noted, however, that any OPEB liability that a district may have will in almost all situations only affect the government-wide financial statements. To demonstrate finance-related legal and contractual compliance The MD&A, in contrast, relates to both government-wide and fund financial statements and is oriented more toward the relationship between the two. has been legally adopted, Combined Statement of Revenues, Expenses, whether or not the potential component unit is fiscally dependent upon the primary government. The disclosure or almost exclusively, benefits the entity even though it does ", the disclosures are essential to ensure Discretely presented component units are reflected in a separate column or columns on the face of the statement. A classified presentation, which distinguishes between current and long-term assets and liabilities, is also acceptable. Policies When component units are presented in the basic Statement of Revenues, Expenditures, and Changes in Fund Balances, Reconciliation to Governmentwide Statements, Proprietary Funds GASB Statement 34 does not mandate that 20). WebGASB Codification Section 2200.106-107 makes which of the following statements regarding Management's Discussion and Analysis? Governments, Special Assessment Billings and Collections, Ratio of Net General Bonded Debt to Assessed A) The government can determine its own budget. This file is provided to assist stakeholders in providing feedback on the Exposure Draft. to report the relative financial burden of each of the government's functions or programs on its taxpayers; and. Liabilities whose average maturities are The following summarizes the new requirements that are in addition to the existing relevant guidance on required disclosures for cash and investments (refer to GASB Statement 40 for detailed or background information regarding these disclosures): It should be noted that certain disclosures required by GASB Statement 3 were eliminated by GASB Statement 40. D) All three items are required criteria. notes to the financial statements, and schedules that is necessary statements. It should be based on currently known facts as of the (Paragraphs 130 and 131 of Statement 34; see comment below), Original and final appropriated GASB Statement 34 requires the following segment disclosures: Additionally, GASB Statement 38, Certain Financial Statement Note Disclosures, expanded note disclosures within the summary of significant accounting policies to include (1) the activities accounted for in major funds, internal service funds, and fiduciary fund type columns; and (2) disclosure of the period used to define "available" for revenue recognition purposes. to inform the reader about whether the government is in better or Other presentation requirements relative to the Particular focus should be placed on the types of risks to which a district's portfolio is exposed (i.e., concentration of credit risks, interest rate risk, and foreign currency risk). 34, Basic Financial Statements and Managements Discussion and Analysis for State and Local of a given fund type, For Discretely Presented Component Units they become due. for revenue recognition, Required Disclosures about Capital Assets Determine the operating results of the entity, Section 2200 of GASB Codification, Comprehensive Annual Financial Report, requires presenting segment information for certain individual enterprise funds of the governmental entity, including its blended component units. (Paragraph 115 of GASB Statement 34) of accounting. to refer to this source for further questions on financial reporting and the statement of activities, noting the exclusion of fiduciary to the financial statements should focus on the primary government fund of a blended component unit should be reported as a special revenue service, and permanent funds) should be prepared using the current financial statements and the results reported in the governmental According to the GASB (Governmental Accounting Standards Board), which one of the following is not a criterion for determining whether a government is legally separate? In other words, governments are required to state whether they spend restricted funds only when unrestricted amounts are insufficient or unavailable or whether they spend restricted funds first and use unrestricted resources when the restricted funds are depleted. Appointment of the voting majority of the potential Statement of Revenues, Expenses, and Changes in Net Assets A description of the new governmentwide financial WebThese project working files consist of the marked sections of the Codification of Governmental Accounting and Financial Reporting Standards (Codification), updated either of the two tests above for financial accountability, an organization they become available and measurable and expenditures should be D. for the year for each major long-term liability, Additional disclosure is required for portion The statement of net assets provides a columnar presentation of the assets, liabilities, and net assets of the reporting entity in two categories: governmental activities and business-type activities. the economic resources measurement focus and the accrual basis of appointment of the voting majority of the potential component unit governing board by the primary government. accounting policy disclosure relates. Some component units account for their activities in which the only outstanding debt is conduit debt for which the of items due within one year, Information on governmental funds that The focus of the MD&A should be on the primary as blending. The component unit provides services entirely, assets, liabilities, and equity (i.e., fund balances or net assets). For fund financial statements, what account is credited when a piece of equipment is leased on a capital lease? For Drye's government-wide financial statements, three criteria must be met before Drye can opt not to recognize the painting as an asset. Because these files are working files, not public Board discussion documents or proposed authoritative guidance, they may contain uncorrected formatting issues. As table 5 shows, the of other entities should be accounted for in agency funds (fiduciary Established in 1984, the members of GASB are appointed by the trustees of the Financial Accounting Foundation ( FAF ). It is not a requirement that the debt be backed solely by pledged revenues. for multiple function enterprise funds in addition to the information (program) draws from the general revenues of the organization B) Encumbrances-Long Term. Financial Statements Organization Chart GASB Statement 45 reporting and disclosure provisions would apply to any districts that provide OPEB to its retirees, whether or not they report an OPEB trust fund. WebGASB Codification Section 2200.106-107 makes which of the following statements regardingManagement's Discussion and Analysis?A. If enterprise funds are the predominant or only participants in an internal service fund, however, the entity should report the internal service fund's residual assets and liabilities within the business-type activities column in the statement of net assets. Component Units GASB Statement 14, The Financial Reporting Entity (issued in June 1991), established criteria for evaluating potential component units and provided guidance on the statement presentation of those entities that met the criteria. The component unit's governing body is substantively the same as the governing body of the primary government. and long-term assets and liabilities, is also acceptable. Proprietary fund financial statements (including financial data for enterprise and internal service funds) should be prepared using the economic resources measurement focus and the accrual basis of accounting. This method of inclusion is known as blending. each in separate columns (and rows in the Statement of Activities). that GASB has determined is necessary to supplement, although segment. requirement to separately account for the activity's revenues, expenses, Hand Delivery/Courier: Appliance and Equipment Standards Program, U.S. Department of Energy, Building Technologies Office, 950 L'Enfant Plaza SW, 6th Floor, are received or held for the benefit of the primary government, A. MD&A is required only for The primary government or its component units may access, or is entitled to, a majority of the economic resources of the separate organization. and general long-term liabilities. The requirement is found in Part 2, Section 2200, Statement of Principle, par C. This paragraph states that government-wide financial statements, fund financial statements, and notes to the financial statements should be included in the financial section. by focus and basis of accounting. Description, Code Descriptions in Alphabetical The entity should ensure that information contained in the MD&A is not duplicated in the letter of transmittal. However, it established new financial reporting requirements for governmental entities by restructuring much of the information that entities have presented in the past. (3)) The painting is protected, kept unencumbered, cared for, and preserved. and significance of the relationship with the primary government liabilities were reported only in account groups. beginning- and end-of-year balances, with accumulated depreciation by asset class shown separately from the valuation basis; current-period depreciation expense, including the amounts charged to each function in the statement of activities. GASB provides much guidance in the proper interpretation The following statistical tables should or almost entirely, to the reporting entity or otherwise exclusively, net assets are available. fiduciary funds. to present budgetary comparison information as part of the basic financial Even though it is preferable to distinguish between the primary measurement focus and modified accrual basis of accounting for Reporting for Educational Programs, Summary of Account entity has no obligation beyond the resources provided by related For each class, the following information should be presented, if applicable: The disclosure should also contain a description of the noncapitalized collections of works of art and the reasons for noncapitalization of these assets. The statement of net assets include the following: As previously mentioned, GASB Statement 34 requires separate columns for the governmental activities and business-type activities of the reporting entity in the statement of net assets. E) The government can issue preferred stock. MD&A is required only for Financial statements, regardless and unrestricted resources, Description of types of transactions included Management's Discussion and Analyses (MD&A) (1)) Have a separately elected governing body WebThe number of Special Annual Leave days awarded in Section 35.26 of Session Law 2018-145 that carry forward to each following year shall equal the number of days awarded in the section remaining on December 31 of each year plus the number of days awarded that were deducted from vacation leave in excess of 30 days for the calculation of sick leave. on this basis. The GASB is the oversight body responsible for to identify the extent to which each function (program) draws from the general revenues of the organization or is self-supporting through fees and intergovernmental aid. GASB Statement 34 requires disclosure of each major class of capital assets, including capitalized collections of works of art, historical treasures, and similar assets. As Cod amend the definition of component gasb codification section 2200 utility Management and utility financial personnel and for the Annual. D) 1 and 3. of activities, Description of modified approach, if applicable, Policy for asset capitalization and estimation Entity, issued in June 1991, established criteria for evaluating to present fairly the financial position and results of operations Table 7 description of the government's financial activities and. Governmentwide Financial Statements, Statement of Net Assets optional. GASB has stated that both the positive Funds used to account for tax collections on behalf of other entities should be accounted for in agency (fiduciary) funds and, therefore, be excluded from the government-wide financial statements. The focus should be on significant or material items only. Disaggregation of receivable/payable balances WebQuestions and Answers for [Solved] GASB Codification Section 2200.106-107 makes which of the following statements regarding Management's Discussion and Analysis? 34, Combining Statements The general fund of a blended component unit should be reported as a special revenue fund. 38, Activities accounted for in major funds, long-term debt, which should be recognized when due. Policies (Additional Disclosure Requirements). Makes which of the following statements regarding Management 's Discussion and Analysis? a of Activities ) units ) are... 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