Introduction to Governmental and Non-for-Profit Accounting

by Ives, Martin; Razek, Joseph R.; Hosch, Gordon A.; Johnson, Larry A.

• ISBN13: 9780132366359
• ISBN10: 0132366355
• Edition: 6th
• Format: Paperback
• Copyright: 2008-02-21
• Publisher: Prentice Hall

Summary

Covering the essentials of fund accounting, this flexible book introduces the reader to the basic accounting principles at work in both governmental and not-for-profit organizations. This brief book divides most of the chapters into independent sections, which may be covered as separate units. Topics addressed include government and not-for-profit environments and characteristics, the use of funds in governmental accounting, the budgetary process, special revenue funds, debt service funds and capital projects funds, proprietary and fiduciary funds, general reporting principles, government-wide financial statements, fundamentals of accounting and reporting and analysis of financial statements and financial condition.For Accountants and Auditors studying for professional certification.

Table of Contents

Preface	p. xiii
About the Authors	p. xvii
Governmental and Not-for-Profit Accounting Environment and Characteristics	p. 1
Governmental and Not-for-Profit Organizations	p. 2
Governmental and Not-for-Profit Entity Environment	p. 3
Users and Uses of Accounting Information	p. 6
Accounting Principles and Standards	p. 6
Objectives of Financial Reporting	p. 9
Unique Accounting and Financial Reporting Characteristics	p. 10
The Use of Funds in Governmental Accounting	p. 14
Fund Accounting	p. 15
Measurement Focus and Basis of Accounting	p. 18
Governmental-Type Funds	p. 24
Proprietary-Type Funds	p. 31
Fiduciary-Type Funds	p. 37
Budgetary Considerations in Governmental Accounting	p. 55
Budget Laws	p. 57
Types of Budgets	p. 57
Approaches to Budgeting	p. 58
The Budget Process	p. 60
Service Efforts and Accomplishments	p. 69
Budgetary Review	p. 69
The Budget Document	p. 71
Legislative Consideration and Adoption of the Budget	p. 72
Property Tax Levy	p. 73
Using Budgetary Information	p. 74
Classifying Revenues and Expenditures	p. 76
Budgetary Accounting	p. 79
Additional Aspects of Budgetary Accounting	p. 87
Closing Comments	p. 89
The Governmental Fund Accounting Cycle: An Introduction to General and Special Revenue Funds	p. 100
Recognizing Revenues and Expenditures	p. 103
Illustrating the General Fund Accounting Cycle	p. 103
Control Accounts and Subsidiary Ledgers	p. 117
Closing Comments	p. 118
The Governmental Fund Accounting Cycle: Additional Transactions of General and Special Revenue Funds-Introduction to Permanent Funds	p. 136
Property Tax Accounting	p. 138
Accounting for Other Taxes and Intergovernmental Grants	p. 146
Important Exceptions to the General Principle for Recognizing Expenditures	p. 147
Fund Balance Presentation	p. 149
Interfund Activity	p. 152
Additional Aspects of Budgetary Accounting	p. 155
Other Issues	p. 158
Review of Year-End Financial Statements	p. 161
Permanent Funds	p. 162
The Governmental Fund Accounting Cycle: Capital Projects Funds, Debt Service Funds, and Special Assessments	p. 195
Measurement Focus and Basis of Accounting	p. 197
Capital Projects Funds	p. 198
Debt Service Funds	p. 210
Leased Assets	p. 217
Special Assessment Projects	p. 219
Concluding Comment	p. 222
The Governmental Fund Accounting Cycle: Proprietary-Type Funds	p. 241
Overview	p. 242
Specific Aspects of Internal Service Funds	p. 244
Specific Aspects of Enterprise Funds	p. 253
The Governmental Fund Accounting Cycle: Fiduciary Funds	p. 279
Overview of Employer Government Pension Accounting	p. 281
Fiduciary-Type Funds: Pension Trust Funds	p. 286
Fiduciary-Type Funds: Investment Trust Funds	p. 298
Fiduciary-Type Funds: Private Purpose Trust Funds	p. 303
Fiduciary-Type Funds: Agency Funds	p. 308
Reporting Principles and Preparation of Fund Financial Statements	p. 325
Financial Reporting Objectives (GASB Concepts Statement No. 1)	p. 327
Introduction to the Financial Reporting Model (GASB Statement No. 34)	p. 328
The Financial Reporting Entity (GASB Statement No. 14)	p. 329
Overview of the Comprehensive Annual Financial Report	p. 333
Minimum External Financial Reporting Requirements	p. 336
Preparing Management's Discussion and Analysis	p. 337
Preparing Fund Financial Statements: General	p. 338
Preparing Fund Financial Statements for Governmental Funds	p. 340
Preparing Fund Financial Statements for Proprietary Funds	p. 346
Preparing Fund Financial Statements for Fiduciary Funds	p. 349
Preparing Budgetary Comparison Schedules	p. 351
Preparing Notes to the Financial Statements	p. 353
Preparing the Statistical Section	p. 356
Auditor's Report	p. 359
Government-Wide Financial Statements	p. 379
Format of Government-Wide Financial Statements	p. 381
Preparing Government-Wide Financial Statements	p. 388
Creating Government-Wide Financial Statements from Fund Financial Data: Comprehensive Illustration	p. 396
Capital Assets, Including Infrastructure Assets	p. 406
Federal Government Accounting and Reporting	p. 419
The Federal Budgetary Process	p. 420
Federal Accounting-Background	p. 422
Consolidated U.S. Government Financial Statements	p. 427
Accounting Within the Federal Agencies	p. 430
Federal Agency Financial Reporting Requirements	p. 437
Accounting for Not-for-Profit Organizations	p. 452
Characteristics of Not-for-Profit Organizations	p. 453
Financial Reporting	p. 455
Contributions Other Than Services and Collections	p. 462
Contributed Services	p. 468
Contributions to Collections	p. 469
Other Accounting Matters	p. 470
Fund Accounting in NFPOs	p. 474
Illustration Using Funds	p. 476
Not-for-Profit Colleges and Universities	p. 497
Accounting for Health Care Organizations	p. 502
Health Care Service Providers	p. 504
Introduction to Hospital Accounting and Financial Reporting	p. 504
Patient Service Revenues	p. 507
Investment Income, Other Revenues, Gains	p. 514
Expenses	p. 517
Other Transactions	p. 519
Accounting for Transactions with Restrictions	p. 521
Financial Statements	p. 527
Analysis of Financial Statements and Financial Condition	p. 553
Information Content of Financial Statements: A Financial Analysis Perspective	p. 555
An Approach to Financial Statement and Financial Condition Analysis	p. 557
Financial Statement and Financial Condition Analysis Indicators	p. 560
Financial Condition Assessment	p. 567
Illustration of Analysis of Governmental Financial Statements	p. 570
Illustration of Analysis of Not-for-Profit Hospital Financial Statements	p. 577
Fundamentals of Accounting	p. 592
The Accounting Equation: Transaction Analysis	p. 593
The Accrual Basis of Accounting	p. 601
Recording Transactions: Debits and Credits	p. 603
Financial Statements	p. 616
Closing the Books	p. 620
Other Transactions and Other Matters	p. 622
Index	p. 637
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