Financial Reporting - Basis of Accounting

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Author:
playboy35
ID:
130252
Filename:
Financial Reporting - Basis of Accounting
Updated:
2012-01-24 14:35:54
Tags:
CGFO Financial Reporting budget basis accounting
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Description:
Basis of accounting
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  1. What are the 3 methods used to measure transactions?
    –Accrual

    –Modified accrual

    –Cash
  2. How does the accural basis of accounting work?
    Recognizes the financial effects of transactions, events and interfund activities when they occur, regardless of the timing of related cash flows

    • –Revenues - When earned
    • –Expenses - When incurred

    Example - proprietary funds
  3. How does the modified accural basis of accounting work?
    • –Revenues
    • When measurable & available
    • –60 day criteria

    • –Expenditures
    • Expected to be liquidated with current financial resources i.e. recognized in period governments liquidate
    • the related liability rather than when the liability is first incurred.

    Example - governmental funds
  4. How does the cash basis of accounting work?
    • Cash
    • –Recognizes transactions/events when related cash amounts received or disbursed

    Individual taxpayers
  5. How are government wide statements measured and what is the basis of accounting?
    • Measurement focus is economic resources
    • Basis of accounting is accural
  6. What is the measurement focus and basis of accounting for government fund statements?
    • Measurement of focus is current financial resources
    • Basis of accounting is modified accural
  7. What is the measurement focus and basis of accounting for proprietary fund statements?
    • Measurement of focus is economic resources
    • Basis of accounting is accural
  8. What is the measurement focus and basis of accounting for fiduciary fund statements?
    • Measurement focus is economic resources
    • Basis of accounting is accural

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