Question

In: Accounting

1-Discuss the differences between the fund financial statements and the government-wide financial statements. 2-Give an example...

1-Discuss the differences between the fund financial statements and the government-wide financial statements.

2-Give an example of a government’s Management’s Discussion and Analysis. Explain the basics that are covered in their Management’s Discussion and Analysis.

3-Barry City has a governmental fund that provides loans to commercial businesses operating in Jerome County (Barry City is within Jerome County). This year, Barry City made loans totaling $1,000,000. How should Barry City classify the disbursements of loans on the statement of cash flows?

4-Give an example of a statement of activities of a government-wide financial statement. Explain the primary purpose of the document – what information is it designed primarily to provide?

Solutions

Expert Solution

1

Government-wide Financial Statements: Required Financial Statements: Statement of Net Position & Statement of Activities ? Changes in Economic Resources MFBA – Accrual Basis of Accounting ? Exclusion or limitation on the use of fiduciary funds ? Introduction of permanent funds ? Introduction of private-purpose trust funds ? Exclusion or elimination of the reporting of internal service funds ? Expanded mandatory use of enterprise funds ? Limitation on the voluntary use of enterprise funds

Fund Financial Statements: ? GASB 34 has left the basic accounting and financial reporting substantially unchanged. Nevertheless, it does introduce a certain number of changes and clarifications to existing guidance ? Required Financial Statements: Governmental Funds – Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balances Proprietary Funds – Statement of Net Position Statement of Revenues, Expenses and Changes in Net Position Cash Flow Statement Fiduciary Funds – Statement of Net Position Statement of Changes in Net Position ? Focus of financial reporting will shift from a fund type reporting to major individual funds reporting ? Creation of a fifth governmental fund type to be known as permanent funds ? Elimination of “Account Groups” ?

2.

MANAGEMENT’S DISCUSSION AND ANALYSIS The Morrison Soil and Water Conservation District’s Discussion and Analysis provides an overview of the SWCD’s financial activities for the fiscal year ended 2011. Since this information is designed to focus on the current year’s activities, resulting changes and currently known facts, it should be read in conjunction with the SWCD’s Financial Statements

. FINANCIAL HIGHLIGHTS The assets of the Morrison Soil and Water Conservation District exceeded its liabilities at the close of the most recent calendar year by $282,403.00. Of this amount $1,102.00 is reserved for prepaid items and the remaining balance of $281,302.00 is considered unreserved, undesignated fund balance. At the end of the year the total net assets of $281,980.00 was considered unrestricted and will be spent according to board discretion

3.Disbursments of loan can be classified as operating activities and secondly it should posted in financing activities

4.

the purpouse is s accrued and amortized over the expected useful life of the landfill.It should accrued on a pro-rated basis each period based on how full the landfill .that isaccrued in full at the time the costs become estimable .Is treated as an encumbrance at the time it become estimable and as an expenditure when it is actually paid


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