How are they reported in the fund and government-wide financial statements? General capital assets in simple sense the assets that are acquired by the government using government funds . These assets will be reported and will be shown under the governmental activities of the government-wide financial statement.
Are capital assets reported in governmental funds?
Capital assets are recorded as assets in the government-wide financial statements. Capital assets are not current financial resources. Accordingly, they are not recorded in the governmental funds. When a governmental fund purchases or constructs a capital asset, it is recorded as expenditure rather than as asset.
Why are general capital assets not recorded in governmental funds?
Why are general capital assets not recorded in governmental funds? Capital assets are non financial resources. They are excluded from governmental funds because the measurement focus of governmental funds is upon financial resources .
What assets appear in government-wide financial statements?
The capital assets of a government are assets that have initial useful lives extending beyond a single reporting period, while general capital assets are the capital assets purchased by the governmental fund and are not specifically related to activities in proprietary or fiduciary funds.
How are purchases of capital assets presented in the governmental fund financial statements?
Capital assets do not appear in governmental fund financial statements because they are presented using the current financial resources measurement focus and modified accrual basis of accounting. Capital assets purchased or constructed with governmental fund resources are expensed in the period they are acquired .
What are the 5 types of governmental funds?
According to the GAAFR (the Blue Book), governmental funds are “used to account for activities primarily supported by taxes, grants, and similar revenue sources.” Within the category of Governmental Funds, there are five types: General Fund, special revenue funds, debt service funds, capital projects funds, and ...
What is the general rule for reporting on funds in the fund level financial statements for fiduciary funds?
What is the general rule for reporting on funds in the fund-level financial statements for fiduciary funds? Separate columns should be shown for each fund type, such as Investment Trust Funds (rather than individual funds), in the fund-level financial statements for fiduciary funds.
What is the general fund in governmental accounting?
The general fund is a government’s basic operating fund and accounts for everything not accounted for in another fund . Special revenue funds are intended to be used to report specific revenue sources that are limited to being used for a particular purpose, such as transportation aid.
Where should a deferred inflow of resources be reported on the financial statements?
Statement 63 established that a deferred outflow of resources should be reported on the statement of financial position in a separate section directly following assets, and a deferred inflow of resources section should directly follow liabilities .
Where are general capital assets reported?
Capital assets are reported at their historical cost net of accumulated depreciation in financial statements using the economic resources measurement focus and the accrual basis of accounting.
At what point are revenues recognized in the general fund?
In the General Fund, revenues are recognized when measurable and earned . F – The General Fund uses modified accrual accounting. Revenues are recognized when they are both measurable and available to finance expenditures of the current period.
What is the statement of net assets?
The statement of net assets presents the same information as a balance sheet : It assesses the balance of a government’s assets—the resources it can use to provide service and operate the government—against its liabilities—its obligations to turn over resources to other organizations or individuals.
What does the statement of net position tell you?
The statement of net position presents the financial position of the governmental entity and its discretely presented component units . This statement is required to present all financial and capital resources using an economic resources measurement focus and the accrual basis of accounting.
What is a major fund in governmental accounting?
Major funds are funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds.
What funds the general fund?
The three primary sources of general fund revenue are personal income tax, sales tax, and corporate income tax collections .
Which of the following funds would record depreciation of capital assets?
Which of the following funds would record depreciation of capital assets? Internal service fund .
