Description
Government and Not-For-Profit Accounting: Concepts and Practices, 7th Edition Granof EBOOK PDF Instant Download
Table of Content
Title Page
Copyright
Contents
Preface
1 The Government and Not-for-Profit Environment
How Do Governments and Not-For-Profits Compare With Businesses?
In Practice: Why is State and Local Government Accounting Important?
What Other Characteristics of Governments and Not-For-Profits Have Accounting Implications?
How Do Governments Compare With Not-For-Profits?
What Are the Overall Purposes of Financial Reporting?
Who Are the Users, and What are the Uses of Financial Reports?
What Are the Specific Objectives of Financial Reporting as Set Forth by The GASB and FASB?
Example: Clash among Reporting Objectives
Do Differences in Accounting Principles Really Matter?
In Practice: Will Accounting Changes Make a Difference?
Who Establishes Generally Accepted Accounting Principles?
In Practice: Assessing the Profitability of a Football Program
In Practice: Governments and Not-For-Profits May Also Be Aggressive in Their Accounting
Summary
Key Terms in This Chapter
Questions For Review and Discussion
Exercises
Continuing Problem
Problems
Questions For Research, Analysis, And Discussion
2 Fund Accounting
What Is a Fund?
What Are the Key Elements of Government Financial Statements?
What Characterizes Funds?
Example: Fund Accounting in a School District
How Can Funds Be Combined and Consolidated?
What Are the Main Types of a Government’s Funds?
What’s Notable about Each Type of Governmental Fund?
What’s Notable about Each Type of Proprietary Fund?
What’s Notable about Each Type of Fiduciary Fund?
What Is Included in a Government’s Comprehensive Annual Financial Report (CAFR)?
Example: Government-Wide Statement of Activities
How Do the Funds and Annual Reports of Not-For-Profits Differ from Those of Governments?
Summary
Key Terms in This Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Continuing Problem
Problems
Questions for Research, Analysis, and Discussion
Solution to Exercise for Review and Self-Study
3 Issues of Budgeting and Control
What Are the Key Purposes of Budgets?
Why Is More Than One Type of Budget Necessary?
How Are Expenditures and Revenues Classified?
Why Are Performance Budgets Necessary?
What Are the Key Phases for the Budget Cycle?
In Practice: Budgeting and Legislative Constraints
On What Basis of Accounting Are Budgets Prepared?
In Practice: States Balance Their Budgets the Painless Way
In Practice: The Cost of GAAP
In Practice: Balancing the Budget by Selling Assets to Yourself
What Cautions Must Be Taken in Budget-to-Actual Comparisons?
How Does Budgeting in Not-For-Profit Organizations Compare with That in Governments?
How do Budgets Enhance Control?
What are the Distinctive Ways Governments Record their Budgets?
Example: Budgetary Entries
How Does Encumbrance Accounting Prevent Overspending?
Example: The Encumbrance Cycle—Year 1
Example: The Encumbrance Cycle—Year 2
Example: Impact of Encumbrances on Fund Balance
Are Budgetary and Encumbrance Entries Really Needed?
Summary
Key Terms in This Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Continuing Problem
Problems
Questions for Research, Analysis, and Discussion
Solution to Exercise for Review and Self-Study
4 Recognizing Revenues in Governmental Funds
Why and How Do Governments Use the Modified Accrual Basis?
What Are the Main Types of Nonexchange Revenues and the Limitations on How and When They Can Be Used
How Should Property Taxes and Other Imposed Nonexchange Revenues Be Accounted For?
In Practice: Housing Woes Raise New Problems for Accountants and Auditors
Example: Property Taxes
Example: Fines
How Should Sales Taxes and Other Derived Tax Revenues Be Accounted For?
Example: Sales Taxes
Example: Sales Taxes Collected by State
Example: Income Taxes
How Should Grants and Similar Government-Mandated and Voluntary Nonexchange Revenues Be Accounted Fo
Example: Unrestricted Grant with Time Requirement
Example: Grant with Purpose Restriction
Example: Reimbursement (Eligibility Requirement) Grant
Example: Unrestricted Grant with Contingency Eligibility Requirement
Example: Endowment Gift
Example: Pledges
Example: Payments in Lieu of Taxes
Example: Donations of Land for Differing Purposes
Example: On-Behalf Payments
How Should Sales of Capital Assets Be Accounted For?
Example: Sales of Capital Assets
How Should Licenses, Permits, and Other Exchange Transactions Be Accounted For?
Example: License Fees
How Should Governments Report Revenues in Their Government-Wide Statements?
Summary
Key Terms in This Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Continuing Problem
Problems
Questions for Research, Analysis, and Discussion
Solution to Exercise for Review and Self-Study
5 Recognizing Expenditures in Governmental Funds
How Is The Accrual Concept Modified for Expenditures?
How Should Wages and Salaries Be Accounted For?
In Practice: Tax Expenditures That Are Actually Reductions in Revenue
Example: Wages and Salaries
How Should Compensated Absences Be Accounted For?
In Practice: Changing the Pay Date by One Day
Example: Vacation Leave
Example: Sick Leave
Example: Sabbatical Leave
How Should Pensions and Other Postemployment Benefits Be Accounted for?
Example: Pension Expenditure
How Should Claims and Judgments Be Accounted For?
Example: Claims and Judgments
How Should the Acquisition and Use of Materials and Supplies Be Accounted For?
Example: Supplies
How Should Prepayments Be Accounted For?
Example: Prepayments
How Should Capital Assets Be Accounted For?
Example: Capital Assets
Example: Installment Notes
Example: Capital Leases
How Should Interest and Principal on Long-Term Debt Be Accounted For?
Example: Long-term Debt
In Practice: California Schoolchildren May Pay for Their Own Education
How Should Nonexchange Expenditures be Accounted for?
Example: Unrestricted Grant with Time Requirement
Example: Grant with Purpose Restriction
Example: Reimbursement (Eligibility Requirement) Grant
How Should Interfund Transactions Be Accounted For?
Example: Interfund Transfer
Example: Interfund Purchase/Sale
What Constitutes other Financing Sources and Uses?
How Should Revenues, Expenditures, and Other Financing Sources and Uses be Reported?
What Is the Significance of the Current Financial Governmental Fund Statements? An Overview
Summary
Key Terms in This Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Continuing Problem
Problems
Questions for Research, Analysis, and Discussion
Solution to Exercise for Review and Self-Study
6 Accounting for Capital Projects and Debt Service
How do Governments Account for Capital Projects Funds?
Example: Bond Issue Costs
Example: Bond Premiums and Discounts
Comprehensive Example: Main Types of Transactions Accounted for in Capital Projects Funds
How do Governments Account for Resources Dedicated to Debt Service?
Comprehensive Example: Main Types of Transactions Accounted for in Debt Service Funds
How Do Governments Handle Special Assessments?
In Practice: Use and Abuse of Special Assessments
Accounting for Special Assessments in Proprietary Funds
In Practice: What We Might Learn From “Net Investment in Capital Assets”
How Can Governments Benefit from Debt Refundings?
Example: Debt Refundings
Example: In-Substance Defeasance
Summary
Key Terms in This Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Continuing Problem
Problems
Questions for Research, Analysis, and Discussion
Solution to Exercise for Review and Self-Study
7 Capital Assets and Investments in Marketable Securities
What Accounting Practices Do Governments Follow for General Capital Assets?
Example: Trade-Ins
Why and How Should Governments Report Infra structure?
In Practice: Nation’s Infrastructure Earns a Cumulative Grade of D+
In Practice: Fair Values May (Or May Not) Facilitate Sales Decisions
How Should Governments Account for Assets That Are Impaired?
Example: Restoration Approach
Example: Service Units approach
Example: Deflated Depreciated Replacement Cost Approach
What Issues Are the Critical Issues With Respect to Marketable Securities and Other Investments?
Example: Investment Income
In Practice: Some Governments May Make Suboptimal Investment Decisions in Order to Avoid Financial S
Example: Interest Income
In Practice: One Common-Type Derivative
In Practice: Investment Debacles
In Practice: Common sense Investment Practices
Summary
Key Terms in this Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Continuing Problem
Problems
Questions for Research, Analysis, and Discussion
Solution to Exercise for Review and Self-Study
8 Long-Term Obligations
Why is Information on Long-Term Debt Important to Statement Users?
Can Governments and Not-For-Profits Go Bankrupt?
In Practice: It is Not So Easy to Declare Municipal Bankruptcy
How Do Governments Account for Long-Term Obligations?
Example: Accounting for Bonds in Government-Wide Statements
In Practice: Valuing a Lottery Prize
What Constitutes A Government’s Long-Term Debt?
Example: Demand Bonds
Example: Bond Anticipation Notes
Example: Tax Anticipation Notes
Example: Capital Leases
Example: Overlapping Debt
In Practice: 49ers Score Big in The Financial Arena
In Practice: Tobacco Bonds are Both Risky and Inconsistent with Government Policies
What Other Information Do Users Want to Know About Outstanding Debt?
Example: Debt Margin
What are Bond Ratings, and Why are They Important?
Summary
Key Terms in this Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Continuing Problem
Problems
Questions for Research, Analysis, and Discussion
Solution to Exercise for Review and Self-Study
9 Business-Type Activities
What Types of Funds Involve Business-Type Activities?
Why Do Governments and Not-For-Profits Engage in Business-Type Activities?
Should Business-Type Activities be Accounted for Differently than Governmental Activities?
What are the Three Basic Statements of Proprietary Fund Accounting?
What Accounting Issues are Unique to Enterprise Funds of Governments?
Example: Revenue Bond Proceeds as Restricted Assets
Example: Landfill Costs in an Enterprise Fund
Example: Pollution Remediation Costs in an Enterprise Fund
What are Internal Service Funds, and How are they Accounted For?
Example: Internal Service Fund Accounting
In Practice: Full-Cost Pricing May Encourage Dysfunctional Decisions
What Special Problems are Created when An Internal Service Fund or the General Fund Accounts for “
Example: Insurance Premiums
Example: Self-Insurance in a General Fund
How are Proprietary Funds Reported?
Example: Eliminating Interfund Balances and Transactions
In Practice: Want to Own a Bridge?
What do Users Want to Know about Revenue Debt?
Summary
Key Terms in this Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Continuing Problem
Problems
Questions for Research, Analysis, and Discussion
Solution to Exercise for Review and Self-Study
10 Pensions and Other Fiduciary Activities
Why is Pension Accounting so Important?
In Practice: Funded Status of State Defined Benefit Plans—Ten Best and Ten Worst
How do Defined Contribution Plans Differ From Defined Benefit Plans?
In Practice: Defined Benefit Plans are More Efficient than Defined Contribution Plans
In Practice: Can Defined Benefit Plans be Saved?
What are the Distinctions Among Single, Agent Multiple-Employer, and Cost-Sharing Plans?
What is the Relationship Between an Employer and its Pension Plan?
What is the Underlying Rationale for the GASB Approach?
How Should the Employer Measure its Pension Obligation?
How is the Discount Rate Determined?
How Should the Pension Expense in Full Accrual Statements be Determined?
Example: The Pension Expense
How Should the Pension Expenditure in Governmental Funds be Determined?
What Special Problems do Multiple-Employer Cost-Sharing Plans Pose?
How Should the Pension Plan be Accounted For?
What Types of Disclosures are Required?
How Should Postemployment Benefits other than Pensions (OPEB) be Accounted For?
What are Fiduciary Funds?
What Is An Endowment?
What are Permanent Funds and How are they Distinguished from Fiduciary Funds?
Should Investment Income be Reported in an Expendable or A Nonexpendable Fund?
Example: Expendable Investment Income
How are The Assets Held in Fiduciary Funds Accounted For?
Example: Recognizing Declines in Fair Value
Should Investment Gains be Considered Net Additions to Principal or Expendable Income?
Example: Investment Gains
Example: Investment Losses
In Practice: Disconnect Between FASB and Legal Provisions
How can Institutions Protect Against Inflation, Yet Reap the Benefits of Current Income?
Example: Fixed Rate of Return Approach
How are the Main Types of Transactions Recorded in Nonexpendable Trust Funds?
Example: Recording Transactions in a Permanent Fund
What Accounting Issues do Agency Funds Present?
Example: Agency Funds
What Accounting Issues do Investment Trust Funds Present?
Summary
Key Terms in this Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Continuing Problem
Problems
Questions for Research, Analysis, and Discussion
Solution to Exercise for Review and Self-Study
11 Issues of Reporting, Disclosure, and Financial Analysis
How Can a Government Prepare Government-Wide Statements from Fund Statements?
Why is the Reporting Entity an Issue for Governments?
Example: The Reporting Entity
What Criteria Have Been Established for Government Reporting Entities?
Example: Financially Accountable Component Units
Example: Fiscal Dependency
Example: Blended Component Units
Example: A Closely Affiliated Organization
Example: Application of Current Standards
What Other Elements Make Up the Comprehensive Annual Financial Report?
What Are the Reporting Requirements for Special-Purpose Governments?
How Can a Government’s Fiscal Condition Be Assessed?
In Practice: Balanced Budget Requirements Don’t Always Result in Balanced Budgets
Drawing Conclusions
Summary
Key Terms in This Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Continuing Problem
Problems
Questions for Research, Analysis, and Discussion
Solution to Exercise for Review and Self-Study
12 Not-for-Profit Organizations
Who’s In Charge?
What Should be the Form and Content of Financial Statements?
Example: Reporting Revenues and Expenses
What Are the Main Types of Contributions, and How Should Pledges be Accounted for?
In Practice: Even the Very Wealthy Sometimes Renege on their Contributions
Example: Pledges
When Should Use-Restricted (Purpose-Restricted) Contributions Be Recognized?
Example: Use-Restricted Contributions
In Practice: A Gift With Strings Attached
Should Contributions of Services be Recognized?
Example: Service Contributions
Should Receipts of Collection Items Be Recognized As Revenues?
In Practice: Examples of Contributed Services
When Should Conditional Promises be Recognized?
In Practice: When a Contribution is Not A Contribution
Example: Conditional Promises
How Should “Pass-Through” Contributions be Accounted for?
Example: A Federated Fund-Raising Organization
Example: A Foundation That Transfers Assets to a Specified Organization
Example: A Foundation That Supports a Related Organization
When Should Gains and Losses on Investments be Recognized?
Example: Investment Gains
What Are Split Interest Agreements, And How Should They Be Accounted For?
How Should Depreciation be Reported?
Example: Depreciation
What Issues Does a Not-For-Profit Face in Establishing its Reporting Entity?
Comprehensive Example: Museum of American Culture
How Should the Costs of Fund-Raising Activities be Determined?
Example: Allocating Charitable Costs
How can a Not-For-Profit’s Fiscal Condition be Assessed?
In Practice: Not-For Profits, Like Corporations, Tainted by Scandals
Summary
Key Terms in this Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Problems
Solution to Exercise for Review and Self-Study
13 Colleges and Universities
What Unique Issues do Colleges and Universities Face?
Accounting for Revenues and Expenses
In Practice: Which Set of Standards Do We Follow?
In Practice: Trying to Go Private
In Practice: How Should a University Classify a Gift that May Not Be a Gift?
Example: Tuition and Fee Revenues
Other Issues
Example: Grants
Example: Student Loans
In Practice: How Auxiliary Enterprises Can Be Misused
Comprehensive Example: Mars University
Evaluating the Fiscal Wherewithal of Colleges and Universities
Summary
Key Terms in this Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Problems
Solution to Exercise for Review and Self-Study
14 Health Care Providers
In Practice: Hospitals Face Economic Challenges While Also Implementing Policy Changes
What Unique Issues do Health Care Providers Face?
What are the Key Differences Between Private Not-For-Profit and Government Health Care Providers?
What Are The Basic Financial Statements?
How Are Key Revenues and Expenses Recognized?
Example: Patient Care Revenues
Example: Capitation Fee Revenues
Example: Charity Care
Example: Malpractice Claims
Example: Retrospective Premiums
Comprehensive Example: Medical Center Hospital
How Can the Fiscal Wherewithal of Health care Organizations be Evaluated?
In Practice: Financial Problems Not Caused By Single Issue
Possible Future Changes
Summary
Key Terms in this Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Problems
Solution to Exercise for Review and Self-Study
15 Managing for Results
What Role Do Accountants Play in the Management Cycle of Governments and Not-For-Profits?
How Can the Limits of Traditional Budgets Be Overcome?
What are the Characteristics of Sound Operational Objectives?
What are the Perils of Establishing Operational Objectives?
In Practice: A Classic Case of Reliance on Misspecified Objectives (Two Perspectives of the Vietnam
How Do Program Budgets Relate Expenditures to Operational Objectives?
How Should Service Efforts and Accomplishments Be Reported?
How Are Capital Expenditures Planned and Budgeted Within A Framework of Operational Objectives?
Example: Benefits Are Cash Savings
Example: Choosing among Options with Similar Benefits
In Practice: September 11 Victim Compensation Fund
Summary
Key Terms in this Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Problems
Solution to Exercise for Review and Self-Study
16 Auditing Governments and Not-For-Profit Organizations
How do Audits of Governments and Not-For-Profits Differ from Those of Businesses?
How has the Yellow Book Influenced Governmental and Not-For-Profit Auditing?
What Types Of Audits Do Governments Conduct?
What Levels of Standards are Applicable to all Engagements?
What are the Key Differences Between Government and Nongovernment Financial Audit Standards?
In Practice: To Whom Should a City Auditor Report?
In Practice: The Auditors’ Dilemma
How Have the Single-Audit Act and other Pronouncements Influenced Auditing?
What Approach Do Auditors Take in Performing Single Audits?
What Reports Result from Single Audits?
What are Performance Audits?
In Practice: Targeting Seemingly Trivial Activities
Example: Evidence Gathering
In Practice: Findings Must Relate to Program Objectives
Example: Ethical Dilemma
Summary
Key Terms in this Chapter
Exercise for Review and Self-Study
Questions for Review and Discussion
Exercises
Problems
Cases in Ethics
Solution to Exercise for Review and Self-Study
17 Federal Government Accounting
Which Agencies Are Responsible For Federal Accounting And Reporting?
What Constitutes The Federal Budget?
What Constitutes the Federal Government Reporting Entity?
What are the Form and Content of Government-Wide Federal Statements?
What Types of Accounts are Maintained by Federal Entities?
What Statements are Required of Federal Agencies?
What are Other Key Features of the FASAB Model?
Example: Subsidized loan
Example: loan Guarantees
What Additional Steps Has The Federal Government Taken To Improve Its Fiscal Management?
What are the key International Trends in Governmental Accounting?
Summary
Key Terms in this Chapter
Exercise For Review And Self-Study
Questions for Review and Discussion
Exercises
Problems
Solution to Exercise for Review and Self-Study
Glossary
Value Tables
Index
EULA
