高级会计学（第10版）习题答案 ch18-Beams10e-sm

Chapter18

ANINTRODUCTIONTOACCOUNTINGFORSTATEANDLOCAL

GOVERNMENTALUNITS

Questions

1TheGovernmentalAccountingStandardsBoardhasprimaryresponsibilityforsettingstandardsthat

provideGAAPforstateandlocalgovernmentalunits.ThemostauthoritativeliteratureincludesGASB

StatementsofStandardsandGASBInterpretations.Thesecondlevelofauthoritativeliteratureincludes

GASBTechnicalBulletinsandthoseAICPAauditandaccountingguidesandstatementsofpositionthat

theAICPAintendedtomakeapplicabletogovernmentsandthattheGASBhascleared.

Before1984,theMunicipalFinanceOfficersAssociation(MFOA)anditsNationalCommitteeon

GovernmentalAccountingprovidedguidanceviathepublicationofMunicipalAccountingandAuditing

in1951andGovernmentalAccounting,Auditing,andFinancialReporting(GAAFR)in1968.Since

1974,theAICPAhasalsoissuedindustryauditguidesforauditsofstateandlocalgovernmentalunits.

2TheMunicipalFinanceOfficersAssociation(MFOA),nowreferredtoastheGovernmentFinanceOfficers

Association(GFOA),firstissuedGovernmentalAccounting,Auditing,andFinancialReport(GAAFR)

in1968.Formanyyears,thisresourcebook-oftenreferredtoastheBlueBookduetoitsdistinctiveblue

cover-constitutedthemostcompleteframeworksofaccountingprinciplesspecifictogovernmentalunits,

andprovidedstandardsforpreparingandevaluatingthefinancialreportsofgovernmentalunits.Updated

periodicallytoreflectchangestogovernmentalaccounting,the2005GAAFRisthemostrecentversion.

3AccordingtotheAICPA'sAuditandAccountingGuide,agovernmentalentityisgenerallycreatedforthe

administrationofpublicaffairsandhasoneormoreofthefollowingcharacteristics:

■Popularelectionofofficersorappointment(orapproval)ofacontrollingmajorityofthe

membersoftheorganization'sgoverningbodybyofficialsofoneormorestateorlocal

governments;

■Thepotentialfbrunilateraldissolutionbyagovernmentwiththenetassetsrevertingtoa

government;or

・Thepowertoenactorenforceatax.

Anorganizationmayalsobeclassifiedasagovernmentalentityifitpossessestheabilitytoissuedebtthat

isexemptfromfederaltaxation.

4Afundisaseparatefiscalandaccountingentitywithaself-balancingsetofaccounts,'"segregatedfbrthe

purposeofcarryingonspecificactivitiesorattainingcertainobjectivesinaccordancewithspecial

regulations,restrictions,orlimitalions.”[GASBCodification\Fundaccountingfacilitatesbudgetarycontrol.

Agovernmentalunitmayhavehundredsoffunds,butonlyeightfundtypes.TheCodification

discussesthreefundcategories(governmental,proprietary,andfiduciary)andeightfundtypes(general,

specialrevenue,permanent,capitalprojects,debtservice,internalservice,enterprise,andtrustandagency

funds).

5Governmentalfundsare“expendable"or"sourceanddisposition“fundsthroughwhichmost

governmentalfunctionsarefinanced.Thesefundsareessentiallyworkingcapitalentities.Theyincludethe

generalfund,specialrevenuefunds,permanentfunds,capitalprojectsfunds,anddebtservicefunds.

Proprietaryfundsare“nonexpendable"or''commercialtype”fundsusedtoaccountfbrongoing

activitiesthataresimilartothosefoundinprivateenterprise.Theyusethebusinessaccountingequation

andtheirreportingparallelsthatofabusinessentityinmostregards.Theyincludetwofundtypes一

enterprisefundsandinternalservicefunds.

Fiduciaryfundsareusedtoaccountforassetsheldbythegovernmentalunitastrusteeoragent

fbrindividuals,privateorganizations,andothergovernmentalunits.Fiduciaryfundsincludetrustfunds

(pension,investment,andprivatepurpose)andagencyfunds.

©2009PearsonEducation,Inc.publishingasPrenticeHall

18-1

6Thefivetypesofgovernmentalfundsarethegeneralfund,permanentfunds,specialrevenuefunds,capital

projectsfunds,anddebtservicefunds.Eachisaworkingcapitalentity,therefore,eachisusedtoaccount

fbraportionofagovemmenfsgeneralgovernmentworkingcapital.Theyaredistinguishedbythepurpose

forwhichtheresourcesofeachfundmay(must)beused.Workingcapitaltobeusedfbr

construction/acquisitionofmajorgeneralgovernmentfixedassetsshouldbeaccountedforincapital

projectsfunds;thattobeusedtopayprincipalandinterestongenerallong-termdebtshouldbeaccounted

forindebtservicefunds.Specialrevenuefundsareusedtoaccountforportionsofworkingcapitaltobe

usedfbrotherspecificgeneraloperatingpurposes.Permanentfundsreportresourcesthatarelegally

restrictedtotheextentthatonlyearnings,andnotprincipal,maybeusedforpurposesthatsupportthe

reportinggovernment5sprograms——thatis,forthebenefitofthegovernmentofitscitizenry.

7Thegovernmentalfundaccountingequationis:

CurrentAssets-CurrentLiabilities=FundBalance

8Thetwotypesofproprietaryfundsareenterprisefundsandinternalservicefunds.Bothchargefeesfbr

theirservicesthatareintendedtorecoverpart,ifnotall,ofthecostsofprovidinggoodsorservices.The

keydistinctionbetweenthetwoisthatthepredominantcustomersofinternalservicefundsareother

departmentsoragenciesofthegovernment,whereasthepredominantcustomersofenterprisefundsare

outsideentitiesorindividuals.

9Theaccountingequationfbraproprietaryfundisessentiallythebusinessaccountingequation—

Current+Noncurrent—Current—Noncurrent=NetAssets

assetsassetsliabilitiesliabilities

10Underthemodifiedaccrualbasisofaccounting,fixedassetsarenotrecordedinthegeneralfund,because

generalfixedassetsdonotrepresentfinancialresourcesavailablefbrcurrentexpenditures,i.e.,theyarenot

workingcapitalitems.Inthefundfinancialstatements,thegeneralfundisusedtoaccountforunrestricted

resourcesthatcanbeexpendedcurrentlyforoperatingpurposes.Sincefixedassetsresultfromexpending

resourcesforlong-termneeds,theyarenotincludedinthefundfinancialstatements.

WiththeadventofGASB34,thegeneralfundisreportedinthegovernmentwidestatements

undertheaccrualbasisofaccounting.Generalfundfixedassets-whichhavetypicallybeendocumented

informallyintheaccountingrecordsandnotedintheoldgeneralfixedassetaccountgroup-willappearin

thegovernmentwidestatementofnetassets.

11Modifiedaccrualaccountingisthesystemofaccountinginwhichrevenuesarerecognizedinthe

accountingperiodinwhichtheybecomeavailableandmeasurableandexpendituresarerecognizedinthe

accountingperiodinwhichtherelatedfundliabilityisincurredandobjectivelymeasurable.Unmatured

interestongenerallong-termdebtisanexceptionforwhichtheexpenditureisrecognizedwhendue.

Modifiedaccrualaccountingappliestogovernmentalfunds(generalfund,specialrevenuefunds,

permanentfunds,debtservicefunds,andcapitalprojectsfunds)andtoassetandliabilityaccountingfor

agencyfunds.

12Governmentalandproprietaryfundsusedifferentfocuseswhenmeasuringfinancialpositionsand

operatingresultsinthefundfinancialstatements.Thetwotypesoffocusesarethe"'economicresources^^

measurementfocusandthe“flowofcurrentfinancialresources“measurementfocus.Theaccrualbasis

(usedwithproprietaryfundsandtrustfunds)referstorecognitionofrevenuesandexpensesasinbusiness

accountingandfollowstheeconomicresourcesmeasurementfocus,wherebyalleconomicresources,

whethercurrentornoncurrent,arereported.Themodifiedaccrualbasisofaccounting(usedwith

governmentalfunds)isconsistentwithaflowofcurrentfinancialresourcesmeasurementfocus,whereby

fundsreportoncurrentresourcesandcurrentobligations.

UnderGASB34,bothgovernmentalfundsandproprietaryfundsusetheaccrualbasisof

accountingandthe“economicresources“measurementfbcusinthegovernmentwidestatements.

13Governmentalrevenuesources,addressedinGASB33,arevariedandincludetaxes,grantreceipts,and

collectionsofuserfeesandfines.Exchangetransactionsarcthose“inwhicheachpartyreceivesandgives

upessentiallyequalvalues."Nonexchangetransactionsarethose“inwhichagovernmentgives(or

receives)valuewithoutdirectlyreceiving(orgiving)equalvalueinexchange.^^Manyofthetransactionsin

governmentalfundsarenonexchangeinnature,becausegeneralgovernmentalactivitiesoftenaddressthe

needsofthepublicandarefundedbytaxpayerswhogenerallydonotreceivebenefitsindirectrelationto

theirtaxpayments.

14Ashorttermnotepayablewillgenerallybepaidwithcurrentresources,thusitisaccountedforasa

liabilityofthegovernmentalfund.Long-termdebtisnotincludedinthefundfinancialstatements,sinceit

willberepaidwithfuture,notcurrentfinancialresources.Thelongtermdebtwill,however,appearasa

liabilityinthegovernmentwidestatementofnetassets.Thisisoneofthereconcilingitemsbetweenthe

fundandgovernmentwidestatements.

15Interfundtransfersarenotexpendituresorexpenses,andtheyareclassifiedseparatelyfromrevenues,

expenditures,andexpensesinthefinancialstatementsofthevariousfunds.Interfundtransfersare

essentiallyshiftsofresourcesbetweenfunds,notcostsorliabilitiesincurredbytheentity.Interfund

transfersconsistofresidualequitytransfers(nonrecumngornonroutinetransfersofequitybetween

funds)andoperatingtransfers(allotherlegallyauthorizedtransfersbetweenfunds).Interfund

transactionsthatwouldbetreatedasrevenues,expenditures,orexpensesiftheyinvolvedanexternalentity

arenotinterfundtransfers,butratherarequasi-extemaltransactionsandaretreatedasrevenue,

expenditures,orexpensesinthenormalfashion.

16Anappropriationisanauthorizationfromthelegislativebodytomakeexpendituresforspecified

purposes.Ifapprovalbythelegislativebodyisforeachdetailedexpenditureiteminthebudget(aline-item

budget),thelegislativebodywillhavemaximumcontrolbecauseeachdetailedchangewouldrequire

legislativeapproval.Ifthebudgetisapprovedintotalorbymajorcategoriesbutnotforeachdetaileditem,

thecitymanager(orotherchiefexecutive)canshiftresourceswithinthecategoriesapprovedwithout

legislativeapproval.Anappropriationbydepartment,forexample,permitsacitymanagertoshift

appropriationsforpolicesuppliestopoliceequipmentorovertimepaywithoutlegislativeapproval.

17UnderGASB34,thegovernmentalandproprietaryfundfinancialstatementsofageneral-purpose

governmentincludethefollowing:

Fundfinancialstatements

GovernmentalFunds

Balancesheet-governmentalfunds(modifiedaccrualbasis)

Statementofrevenues,expenditures,andchangesinfundbalances(modifiedaccrual

basis)

ProprietaryFunds

Statementofnetassets(accrualbasis)

Statementofrevenues,expenses,andchangesinnetassets(accrualbasis)

Statementofcashflows(accrualbasis,directmethod)

18Areciprocaltransferisonewhichisexpectedtoberepaidbythefundborrowingthemoney;whereaswith

anonreciprocaltransferrepaymentisnotexpected.

19TheGAAPGuidelines,listedindescendingorderofauthorityareasfollows:

1.GASBStatementsandGASBInterpretations.ThiscategoryalsoincludesAICPAandFASB

pronouncementsmadeapplicabletostateandlocalgovernmentsbyaGASBStatementor

Interpretation.

2.GASBTechnicalBulletins.ThiscategoryalsoincludesAICPAIndustryAuditandAccounting

GuidesandStatementsofPositionifspecificallymadeapplicabletostateandlocalgovernments

bytheAICPAandclearedbytheGASB.

3.ConsensuspositionsofGASB'sEmergingIssuesTaskForce(EITF)andAICPAPractice

BulletinsifspecificallymadeapplicabletostateandlocalgovernmentsbytheAICPAand

clearedbytheGASB.

4.ImplementationsGuidespublishedbytheGASBstaffandindustrypracticesthatarewidely

recognizedandprevalentinstateandlocalgovernment.

5.Otheraccountingliterature(includingFASBstandardsnotmadeapplicabletogovernmentsby

aGASBstandard).

GASBstatementsarethemostauthoritative.

20Interfundloansareloansthataremadebyonefundtoanotherandmustberepaid.Interfundtransfers

occurwhenonefundprovidesresourcestoanotherforlegallyauthorizedpurposes(anoperatingtransfer)

orwhenonefundhelpstoestablishorenhanceanother(aresidualequitytransfer).Interfundservices

providedandusedincludesalesandpurchasesbetweenfundsatapproximateexternalmarketvalue.An

interfundreimbursementisnecessarywhenanexpenditureapplicabletoonefundismadebyadifferent

fund.

21Expensesreflectthecostofassetsorservicesusedbyanentity,andtheyarerecognizedintheperiod

incurred.Expenditures,uniquetogovernmentaccounting,typicallyreflecttheuseofgovernmentalfund

workingcapital.Proprietaryfundsrecognizeexpenses,whereasgovernmentalfundsrecognize

expenditures.

22Acomprehensiveannualfinancialreport(CAFR)containsthreemajorsections—introductory,financial

andstatistical.TheintroductorysectionofaCAFRincludesatableofcontents,aletteroftransmittal,alist

ofprincipalofficers,andanorganizationalchart.Thefinancialsectionincludesthemanagement's

discussionandanalysis,theauditor'sreport,thegovernment-widefinancialstatements,andthefund

financialstatements.Thestatisticalsectioncontainsstatisticaltableswithcomparativedatafromseveral

periodsoftime.

23Fiscalaccountabilityistheresponsibilityofagovernmenttodemonstratecompliancewithpublic

decisionsregardingtheuseoffinancialresources.Operationalaccountabilitymeasurestheextentofa

government'ssuccessatmeetingoperatingobjectivesefficientlyandeffectivelyanditsabilitytomeet

operatingobjectivesinthefuture.

SOLUTIONSTOEXERCISES

E18-1E18-2E18-3

[AICPAadapted]

1c1d1b

2a2c2a

3c3c3a

4d4a4d

5d5c5b

E18-4El8-5E18-6

1c1c1trustandagencyfunds

2b2b2enterprisefunds

3d3d3generalfunds

4c4b4debtservicefunds

5d5d5permanentfunds

6specialrevenuefunds

7internalservicefunds

8capitalprojectsfunds

E18-7

1Currentassets-30,000

Currentliabilities+2,500

Fundbalance-32,500

2Currentassets+98,000

CuiTentliabilities—

Fundbalance+98,000

3CuiTentassets+60,000

Currentliabilities+60,000

Fundbalance—

4CuiTentassets-63,150

Currentliabilities-60,000

Fundbalance-3,150

Assumesrepaymentduringthesameyearborrowed.Ifthenotehadnotmaturedbythe

endoftheyearoftheborrowing,interestexpendituresandinterestpayablewouldbe

accrued.

5Currentassets+600,000

Currentliabilities—

Fundbalance+600,000

Atthesametimeamemoentrywillbemadenotingaliabilityinthelong-termdebt

records.Thisisusedtopreparethegovernmentwidestatementswherelong-termdebts

arerecordedingovernmentalfunds.

6Currentassets-25,000

Currentliabilities—

Fundbalance-25,000

Atthesametimeamemoentrywillbemadenotinganassetinthefixedassetrecords.

Thisisusedtopreparethegovernmentwidestatementswherefixedassetsarerecordedin

governmentalfunds.

7CuiTentassets+1,200

Currentliabilities--

Fundbalance+1,200

Atthesametimeamemoentrywillbemaderemovingtheassetfromthefixedasset

records.

8Currentassets—

CuiTentliabilities—

Fundbalance—

Atthesametimeamemoentrywillbemadenotingaliabilityinthelong-termdebt

records.Thisisusedtopreparethegovernmentwidestatementswherelong-termdebts

arerecordedingovernmentalfunds.

E18-8

1Currentassets-30,000

Noncurrentassets—

Currentliabilities+2,500

Long-termliabilities—

NetAssets-32,500

2Currentassets+98,000

Noncurrentassets—

Currentliabilities—

Long-termliabilities--

NetAssets+98,000

Actually,thenetassetincreaseisreportedasa$100,000increase(revenues)anda

$2,000decrease(uncollectibleaccountsexpense).Further,itisrelativelyuncommonto

havetaxrevenuesinproprietaryactivities

3Currentassets+60,000

Noncurrentassets—

CuiTentliabilities+60,000

Long-termliabilities—

NetAssets—

Assumesrepaymentduringthesameyearborrowed.Ifthenotehadnotmaturedbythe

endoftheyearoftheborrowing,interestexpenseandinterestpayablewouldbeaccrued.

4Currentassets-63,150

Noncurrentassets—

CuiTentliabilities-60,000

Long-termliabilities—

NetAssets-3,150

5Currentassets+600,000

Noncurrentassets—

Currentliabilities—

Long-termliabilities+600,000

NetAssets—

Interestexpenseshouldbeaccruedonproprietaryfundlong-termdebtaswellason

proprietaryfundshort-termdebt.

6Currentassets-25,000

Noncurrentassets+25,000

Currentliabilities—

Long-termliabilities—

NetAssets—

7Currentassets+1,200

Noncurrentassets(Fullydepreciated)0

Currentliabilities—

Long-termliabilities--

NetAssets+1,200

8Currentassets--

Noncurrentassets--

Currentliabilities—

Long-termliabilities+50,000

NetAssets-50,000

E18-9

1debtservicefund

2permanentfund

3specialrevenuefund

4agencyfund

5capitalprojectsfund,debtservicefund

E18-10

1capitalprojectsfund,debtservicefund

2internalservicefund

3enterprisefund

4specialrevenuefund

5generalfund

E18-11

1pensiontrustfund

2enterprisefund

3internalservicefund

4generalfund

5generalfund(mayalsobeallocatedtootherfundsaftercollection)

E18-12

1GeneralFund

Currentassets-95,000

CuiTentliabilities—

Fundbalance-95,000

2GeneralFund

CuiTentassets—

Currentliabilities+25,000

Fundbalance-25,000

Yearendaccrual

Currentassets—

Currentliabilities($25,000x.08x.5)