Reporting Entity

1
Reporting Entity

• What is the basic criterion used to determine
  the reporting entity for a governmental unit?
• a. Special financing arrangement.
• b. Geographic boundaries.
• c. Scope of public services.
• d. Financial accountability.

2
Presentation

• 2. South City School District has a separately
  elected governing body that administers the
  public school system. The district's budget is
  subject to the approval of the city council. The
  district's financial activity should be reported
  in the City's financial statements by
• a. Blending only.
• b. Discrete presentation.
• c. Inclusion as a footnote only.
• d. Either blending or inclusion as a footnote.

3
Fullerton City

• Items 5 and 6 are based on the followingFullerto
  n City adopted the provisions of GASB 34 for its
  financial statements issued for 2002. As of
  December 31, 2002, the city compiled the
  information below for its capital assets,
  exclusive of infrastructure assets.Cost of
  capital assets 3,500,000Accumulated
  depreciation on the capital assets 750,000Outstan
  ding debt related to the capital assets
  1,250,000

4
Statement of Net Assets

• 5. On the government-wide statement of net assets
  at December 31, 2002, under the governmental
  activities column, what amount should be reported
  for capital assets?
• a. 3,500,000
• b. 1,500,000
• c. 2,250,000
• d. 2,750,000

5
Net assets

• 6. On the government-wide statement of net assets
  at December 31, 2002, under the governmental
  activities column, the information related to
  capital assets should be reported in the net
  assets section at which of the following amounts?
  
• a. 3,500,000
• b. 1,500,000
• c. 2,250,000
• d. 2,750,000

6
Depreciation expense

• 8. In accordance with GASB 34 depreciation
  expense would be reported on which of the
  following financial statements?I. The
  government-wide statement of activities.II. The
  statement of revenues, expenses, and changes in
  fund net assets prepared for proprietary
  funds.a. I only.b. II only.c. Both I and
  II.d. Neither I nor II.

7
CAFR

• In accordance with GASB 34 governments should
  prepare
• Combined financial statements, using the modified
  accrual basis of accounting and the flow of
  economic resources.
• Combined financial statements, using the accrual
  basis of accounting and the flow of financial
  resources.
• Government-wide financial statements, using the
  accrual basis of accounting and the flow of
  financial resources.
• Government-wide financial statements, using the
  accrual basis of accounting and the flow of
  economic resources.

8
Comparability

• 11. Which of the following statements is correct
  regarding comparability of governmental financial
  reports?
• a. Comparability is not relevant in governmental
  financial reporting.b. Similarly designated
  governments perform the same functions.c. Selecti
  on of different alternatives in accounting
  procedures or practices account for the
  differences between financial reports.d. Differen
  ces between financial reports should be due to
  substantive differences in underlying
  transactions or the governmental structure.

9
Fund accounting

• 12. Fund accounting is used by governmental units
  with resources that must be
• Composed of cash or cash equivalents.
• Incorporated into combined or combining
  financialstatements.
• Segregated for the purpose of carrying on
  specific activities or attaining certain
  objectives.
• Segregated physically according to various
  objectives.

10
Regulatory bodies

• 13. The primary authoritative body for
  determining the measurement focus and basis of
  accounting standards for governmental fund
  operating statements is the
• Governmental Accounting Standards Board (GASB).
• National Council on Governmental Accounting
  (NCGA).
• Governmental Accounting and Auditing Committee of
  the AICPA (GAAC).
• Financial Accounting Standards Board (FASB).

11
Users

• 14. Governmental financial reporting should
  provide information to assist users in which
  situation(s)?I. Making social and political
  decisions.II. Assessing whether current-year
  citizens received services but shifted part of
  the payment burden to future year citizens.a. I
  only.b. II only.c. Both I and II.d. Neither I
  nor II.