What GASB 24?
GASB 24 requires reporting employers to recognize revenue and expenditures/expenses for on-behalf payments in their financial statements. On-behalf payments for fringe benefits and salaries are direct payments made by a paying entity to a third-party recipient for the employees of an employer entity.
What is the purpose of GASB 34?
Why is GASB 34 important? The goal of GASB 34 was to improve financial transparency within state and local governments fiscal reports. The GASB 34 increases governmental accountability by allowing citizens to participate in deciding operating budgets of state and local governments.
What is the difference in reporting exchange and a Nonexchange transaction?
An exchange or exchange-like transaction is one in which each party receives and sacrifices something of approximate equal value. A non-exchange transaction is one in which one party receives something of value without directly giving value in exchange. Grants can be either exchange or non-exchange transactions.
Is a special revenue fund a governmental fund?
A special revenue fund is an account established by a government to collect money that must be used for a specific project. Special revenue funds provide an extra level of accountability and transparency to taxpayers that their tax dollars will go toward an intended purpose.
What are the five types of governmental funds?
Governmental funds are classified into five fund types: general, special revenue, capital projects, debt service, and permanent funds.
Do nonprofits follow FASB or GASB?
Both governments and non-profits follow GAAP, the Generally Accepted Accounting Principles. But each organization also has their own standards to keep in mind as well. The government follows the Government Accounting Standard Board (GASB), and non-profits follow the Financial Accounting Standards Board (FASB).
What GASB 40?
What is the objective of GASB 40? The GASB’s objective in this statement is to provide to users of financial statements information about deposit and investment risks that could affect a government’s ability to provide services and meet its obligations as they become due.
What are the four categories of Nonexchange revenues?
There are four types of nonexchange transactions: derived tax revenue, imposed nonexchange revenues, government-mandated nonexchange transactions and voluntary nonexchange transactions.
What are government-mandated Nonexchange transactions?
Government-mandated nonexchange transactions, which occur when a government at one level provides resources to a government at another level and requires the recipient to use the resources for a specific purpose (for example, federal programs that state or local governments are mandated to perform)
What are the 5 types of governmental funds?
What are the three main types of governmental funds?
There are several types of government funds, which are groupings used in accounting for tax-supported activities completed by the federal government. There are three major types of funds. These types are governmental, proprietary, and fiduciary.
Is a grant recorded as income?
Yes. The receipt of a government grant by a business generally is not excluded from the business’s gross income under the Code and therefore is taxable.
Do grants count as revenue?
Federal and state grants are usually either nonreimbursable grants or expenditure-driven grants. Nonreimbursable grants are usually received up front and recorded as revenue at the time of receipt and not contingent on incurring an expenditure.
What are 3 types of funds?
There are three major types of funds. These types are governmental, proprietary, and fiduciary.
What are the 11 different funds used in governmental accounting?
Governmental Reporting Overview Fund Type Structure
|Governmental Funds||Proprietary Funds||Fiduciary Funds|
|General (FT01)||Enterprise (FT05)||Pension (FT10)|
|Special Revenue (FT02)||Internal Service (FT06)||External Investment Trust (FT18)|
|Debt Service (FT03)||Private-Purpose Trust (FT20)|
|Capital Projects (FT04)||Custodial (FT22)|
What’s the difference between FASB and GASB?
FASB standards, on one hand, are created by the Financial Accounting Standards Board (FASB) and they apply to all public companies. GASB standards, on the other hand, are created by the Governmental Accounting Standards Board (GASB) and they apply to state and local governments.
What is GASB 72?
Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, provides guidance for determining and applying fair value measurements for financial reporting for governments. It’s effective for years beginning after June 15, 2015.
What is the GASB 68?
GASB 68 requires the government entity to recognize additional items as pension expense on the financial statements in order to record the change in the net pension liability from the previous reporting period.
What is GASB 73?
GASB Statement 73 is for accounting and financial reporting for pensions not within the scope of GASB Statement 68 and applies for employer fiscal years beginning after June 15, 2016.
Are grants Nonexchange transactions?
Non-exchange transactions include taxes, grants and private donations. The effect on the timing of recognition is different — depending on whether a non-exchange transaction is: imposed non-exchange revenue transaction. government-mandated.
Which of the following is an example of an imposed Nonexchange transaction?
Property Taxes, special assessments, and fines and forfeits are types of nonexchange transactions. These are examples of: Imposed nonexchange transactions.