CONTENTS

Preface

About the Author

Chapter 1: New Developments

Introduction

Recently Issued GASB Statements and Their Effective Dates

Exposure Drafts

Preliminary Views

GASB Project Plan

Summary

Chapter 2: Foundations of Governmental Accounting

Introduction

Chapter Overview

Entities Covered by Governmental Accounting Principles

Overview of The History of Governmental Accounting Standards Setting

Objectives of Governmental Accounting and Financial Reporting

Objectives of Financial Reporting

Communication Methods

Elements of Financial Statements

Hierarchy of Governmental Accounting Standards

Codification of Certain FASB and AICPA Accounting and Financial Reporting Guidance

Summary

Chapter 3: Fund Accounting Fundamentals

Introduction

Definition of Fund and The Purpose of Fund Accounting

A Synopsis of The Various Types of Funds Used by Governments for Accounting and Financial Reporting

A Definition of Basis of Accounting and Measurement Focus

Recognition and Measurement of Certain Fund Liabilities and Expenditures

A Synopsis of Basis of Accounting and Measurement Focus Used by Each Type of Fund

Summary

Chapter 4: General Fund and Special Revenue Funds

Introduction

Basis of Accounting and Measurement Focus

Nature and Use of The General Fund

Nature and Use of Special Revenue Funds

Accounting for Certain Revenue and Expenditures of General and Special Revenue Funds

Accounting for Assets, Liabilities, and Fund Balances of General and Special Revenue Funds

Summary

Chapter 5: Capital Projects Funds

Introduction

Basis of Accounting

Measurement Focus

When are Capital Projects Funds Used?

Revenues and Other Financing Sources

Summary

Chapter 6: Debt Service Funds

Introduction

Situations When A Debt Service Fund is Required or Desirable

Basis of Accounting and Measurement Focus

Expenditure Recognition for Debt Service Payments

Accounting for The Advance Refunding of Long-Term Debt

Summary

Chapter 7: Proprietary Funds

Introduction

Basis of Accounting and Measurement Focus for Proprietary Funds

Enterprise Funds

Internal Service Funds

Summary

Chapter 8: Fiduciary Funds

Introduction

Agency Funds

Pension (and Other Employee Benefit) Trust Funds

Investment Trust Funds

Private-Purpose Trust Funds

Summary

Chapter 9: Financial Statements Prepared by Governments

Introduction

Basic Financial Statements

Interfund Transactions—Fund Financial Statements

Intra-Entity Transactions—Government-Wide Financial Statements

Reporting Deferred Inflows and Outflows of Resources

Comprehensive Annual Financial Report

Cash Flow Statement Preparation and Reporting

Summary

Chapter 10: The Importance of Budgets to Governments

Introduction

Budget Background

Which Funds of The Government Adopt Budgets?

Differences Between The Budget and GAAP

Budgetary Control

Summary

Chapter 11: Definition of the Reporting Entity

Introduction

Background

Accountability Focus

Financial Reporting Entity Defined

GASB Statement No. 61 (GASBS 61), The Financial Reporting Entity—An Amendment of GASB Statements No. 14 and No. 34

Determining Whether Certain Fund-Raising Organizations are Component Units—Amendment of GASB Statement 14

GASB Technical Bulletin 2004-1, Tobacco Settlement Recognition and Financial Reporting Entity Issues (GASBTB 2004-1)

Display of Component Units

Summary

Chapter 12: Cash and Investments—Valuation and Disclosures

Introduction

Valuation of Investments

GASB Statement 52, Land and Other Real Estate Held as Investments by Endowments

Financial Reporting Requirements

Required Disclosures

Deposits and Investment Risk Disclosures

Nature of Securities Lending Transactions

Previous Accounting Treatment

GASBS 28’s Effect on The Balance Sheet

GASBS 28’s Effect on The Operating Statement

Pooled Securities

Disclosure Requirements

Summary

Chapter 13: Derivative Instruments

Introduction

Summary

Chapter 14: Capital Assets

Introduction

Valuation of Assets Recorded

Depreciation of Capital Assets

Disclosures Relating to Capital Assets

Service Concession Arrangements

Capitalization of Interest

Summary

Chapter 15: Debt and Other Obligations

Overview of The Accounting for Debt and Other Obligations

Demand Bonds

Advance Refundings

Bond, Revenue, and Tax Anticipation Notes

Special Assessment Debt

Pollution Remediation Obligations

Accounting for Contingencies

GASB Statement No. 58, Accounting and Financial Reporting for Chapter 9 Bankruptcies (GASBS 58)

Sales and Pledges of Receivables and Future Revenues

Statement of Governmental Accounting Standards No. 47, Accounting for Termination Benefits, (GASBS 47)

Summary

Chapter 16: Landfill Closure and Postclosure Care Costs

Introduction

Applicability

Municipal Solid Waste Landfills

Responsibility for Landfill Closure and Postclosure Care Assumed by Another Entity

Disclosures

Summary

Chapter 17: Postemployment Benefits—Pension and Other

Introduction

Scope and Applicability

Requirements for Defined Benefit Pension and OPEB Plans

Calculation of The ARC

Parameters for Actuarial Calculations, Including the ARC

Net Pension Obligation

Net OPEB Obligation

Recording Pension-Related Assets, Liabilities, and Expenditures/Expenses

Recognition of OPEB Expenses/Expenditures, Liabilities and Assets

Additional Guidance on Expenditure/Expense Recognition

GASB Technical Bulletin 2006-1, Accounting and Financial Reporting by Employers and OPEB Plans for Payments from the Federal Government Pursuant to the Retiree Drug Subsidy Provisions of Medicare Part D (GASBTB 2006-1)

GASB Technical Bulletin 2008-1, Determining the Annual Required Contribution Adjustment for Postemployment Benefits (GASBTB 2008-1)

Employer Pension and OPEB Disclosures

Employers with Defined Contribution Plans

Other Provisions

Summary

Chapter 18: Compensated Absences

Introduction

Scope of GASBS 16

Basic Principle

Financial Reporting Considerations

Summary

Chapter 19: Accounting for Leases

Introduction

Accounting Basis

Other Leasing Issues for Governmental Entities

Summary

Chapter 20: Nonexchange Transactions

Chapter 21: Risk Financing and Insurance-Related Activities/Public Entity Risk Pools

Introduction

Risk Financing and Insurance Activities of State and Local Governments (Other Than Public Entity Risk Pools)

Accounting and Financial Reporting for Public Entity Risk Pools

Summary

Chapter 22: Pension and OPEB Plan Financial Statements

Introduction

Pension Plan Accounting and Financial Reporting

Defined Benefit Pension Plans

GASB Statement No. 50, Pension Disclosures—An Amendment of GASB Statements No. 25 and 27

Defined Contribution Pension Plans

Postemployment Benefit Plans Other Than Pensions

GASB 67 Requirements for Pension Plan Accounting and Financial Reporting

Summary

Chapter 23: Educational and Other Governmental Entities

Introduction

School Districts

Governmental Colleges and Universities

Governmental Hospitals and Other Health-Care Providers

Governmental Not-for-Profit Organizations

Other Public Benefit Corporations

Summary

Appendix: Disclosure Checklist

Index