Wiley GAAP for Governments 2012 E-Book

Warren Ruppel

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 1294

Veröffentlichungsjahr: 2012

Beschreibung

The most practical, authoritative guide to governmental GAAP Wiley GAAP for Governments 2012 is a comprehensive guide to the accounting and financial reporting principles used by state and local governments as well as other governmental entities. Designed with the needs of the user in mind, this comprehensive resource presents the important developments in governmental GAAP during the past year. * Full coverage of authoritative accounting standards * Extremely useful and user-friendly examples, illustrations, and helpful practice hints * A comprehensive guide to the accounting and financial reporting principles used by state and local governments as well as other governmental entities * Provides a look ahead to the status of current and future Governmental Accounting Standards Board standards and projects * Offers information on the very latest in standard-setting activities * Also by Warren Ruppel: Governmental Accounting Made Easy Wiley GAAP for Governments 2012 is a thorough, reliable reference financial professionals will consistently keep on their desks rather than on their bookshelves.

Leseprobe

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

Gasb Statement 58, Accounting and Financial Reporting For Chapter 9 Bankruptcies (GASBS 58)

Sales and Pledges of Receivables and Future Revenues

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

Defined Contribution Pension Plans

Postemployment Benefit Plans Other Than Pensions

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

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PREFACE

Governmental accounting is a specialized area that has undergone significant changes over the past few decades. As governmental accounting standards have developed, the complexities of preparing financial statements for governmental entities have greatly increased. Providing meaningful financial information to a wide range of users is not an easy task. Adding to these challenges, the Governmental Accounting Standards Board (GASB) brought sweeping changes to the governmental financial reporting model and is now continuing the process of addressing many important accounting areas related to that model.

Given this rapidly changing environment, the financial statement preparer needs a technical resource that provides more than accurate, competent technical information. The resource needs to be written to fit today’s governmental accounting environment. It needs to take a fresh look at some of the long-standing accounting questions faced by governments and to provide meaningful up-to-date information on recently issued and soon-to-be-issued accounting pronouncements.

The purpose of this book is to meet these needs by providing a useful, complete, and practical guide to governmental accounting principles and financial reporting. Throughout, the book will provide the reader with

An understanding of the concepts and theories underlying each topic discussedA complete, authoritative reference source to assure the reader that all aspects of a particular topic are coveredPractical guidance to allow financial statement preparers and auditors to meet the requirements of generally accepted accounting principles for governments and to efficiently and effectively implement new requirements

The philosophy of this book is to provide the reader with usable information in a useful format. Accounting theory must correspond with practical examples to be useful, because theory seldom matches the specific situation. For technical information to be usable, it must be clearly presented without clutter and unnecessary repetition. The substance of accounting requirements must also be understood in order for them to be properly applied. Understanding the reasons behind why technical requirements exist is an important ingredient in properly applying accounting standards.

The 2012 edition of this book begins with an overview of governmental accounting principles and a description of the various types of funds currently in use by governmental entities. It then describes basic financial statements and provides guidance for reporting various assets, liabilities, revenues and expenses/expenditures. Finally, it examines the accounting and financial reporting requirements for several specific types of governmental entities. The book also includes a “Disclosure Checklist,” which should prove very helpful in determining the completeness of a governmental entity’s financial statement disclosures.

This book would not have come to fruition without the hard work and perseverance of a number of individuals. John DeRemigis of John Wiley & Sons had the confidence to work with me in developing the original concept for the book and in ensuring its continuing quality and success. Pam Reh’s efforts in producing the book are greatly appreciated.

Of course, the time and effort needed to write and maintain this book would not be possible without a supportive family, for which I am grateful to my wife Marie, and my sons Christopher and Gregory.

Warren Ruppel

Woodcliff Lake, NJ

December 2011

ABOUT THE AUTHOR

Warren Ruppel, CPA, is a Partner at Marks Paneth & Shron LLP, New York, in the firm’s Nonprofit and Government Services Group and also is a leader in its Professional Practices Group. He formerly was the assistant comptroller for accounting of The City of New York, where he was responsible for all aspects of the City’s accounting and financial reporting. He has over thirty years of experience in governmental and not-for-profit accounting and financial reporting. He began his career at KPMG after graduating from St. John’s University, New York. His involvement with governmental accounting and auditing began with his first audit assignment—the second audit ever performed of the financial statements of The City of New York. From that time he served many governmental and commercial clients until he joined Deloitte & Touche in 1989 to specialize in audits of governments and not-for-profit organizations. Mr. Ruppel has also served as the chief financial officer of an international not-for-profit organization.

Mr. Ruppel has served as an instructor for many training courses, including specialized governmental and not-for-profit programs and seminars. He has also been an adjunct lecturer of accounting at the Bernard M. Baruch College of the City University of New York. He is the author of five other books, OMB Circular A-133 Audits, Not-for-Profit Organization Audits, Not-for-Profit Accounting Made Easy, Government Accounting Made Easy, and Not-for-Profit Audit Committee Best Practices.

Mr. Ruppel is a member of the American Institute of Certified Public Accountants as well as the New York State Society of Certified Public Accountants, where he serves on the Governmental Accounting and Auditing and Not-for-Profit Organizations Technical Committees and is the President of the Foundation for Accounting Education. He has also served as the Chair of the Society’s Audit Committee. He is also a past president of the New York Chapter of the Institute of Management Accountants. Mr. Ruppel is a member of the Government Finance Officers Association and serves on its Special Review Committee. He also serves on the Executive Advisory Board to the Department of Accounting and Taxation of St. John’s University.

Chapter 1

NEW DEVELOPMENTS

IntroductionRecently Issued GASB Statements and Their Effective DatesExposure DraftsExposure Draft—Technical Corrections—An Amendment of GASB Statements No. 10 and 62Effective DateExposure Draft—Reporting Items Previously Recognized as Assets and LiabilitiesRefundings of DebtNonexchange TransactionsImposed nonexchange revenue transactionsGovernment-mandated nonexchange transactions and voluntary nonexchange transactionsSales of Future Revenues and Intra-Entity Transfers of Future RevenuesSales of future revenuesIntra-entity transfers of future revenuesDebt Issuance CostsLeasesInitial direct costs of operating leasesSale-leaseback transactionsAcquisition Costs Related to Insurance ActivitiesLending ActivitiesLoan origination fees and costsCommitment feesPurchase of a loan or group of loansMortgage Banking ActivitiesLoan origination fees and costsFees relating to loans held for saleRegulated OperationsGeneral standards of accounting for the effects of regulationRevenue Recognition in Government FundsEffective Date and TransitionExposure Draft—Accounting and Financial Reporting for Pensions—An Amendment of GASB Statement No. 25Defined Benefit Pension PlansFinancial statementsNotes to financial statementsRequired Supplementary InformationMeasurement of the Net Pension Liability of the Employer(s)Projections of benefit paymentsDiscount rateAttribution methodDefined Contribution Pension PlansEffective Date and TransitionExposure Draft—Accounting and Financial Reporting for Pensions—An Amendment of GASB Statement No. 27Defined Benefit PensionsSingle and agent employer liabilities to employees for defined benefit pensionsMeasurement of Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to PensionsFinancial Statements Prepared Using the Current Financial Resources Measurement Focus and Modified Accrual Basis of AccountingNotes to Financial Statements of Single and Agent EmployeesRequired Supplementary Information of Single and Agent EmployersCost-Sharing EmployersDefined Contribution PensionsSpecial Funding SituationsEffective Date and TransitionPreliminary ViewsRecognition of Elements of Financial StatementsMeasurement ApproachesGASB Project PlanSummary

INTRODUCTION

The 2012 Governmental GAAP Guide incorporates all of the pronouncements issued by the Governmental Accounting Standards Board (GASB) through November 2010. This chapter is designed to keep the reader up to date on all pronouncements recently issued by the GASB and their effective dates, as well as to report on the Exposure Drafts, Preliminary Views, and Invitations to Comment for proposed new statements or interpretations that are currently outstanding. This chapter also includes relevant information on the GASB’s Technical Agenda for the upcoming year to give readers information as to potential areas for future GASB requirements.

RECENTLY ISSUED GASB STATEMENTS AND THEIR EFFECTIVE DATES

GASB StatementEffective DateWhere in this book51 Accounting and Reporting for Intangible AssetsPeriods beginning after 6/15/2009Chapter 1452 Land and Other Real Estate Held as Investments by EndowmentsPeriods beginning after 6/15/2008Chapter 1253 Accounting and Financial Reporting for Derivative InstrumentsPeriods beginning after 6/15/2009Chapter 1354 Fund Balance Reporting and Governmental Fund Type DefinitionsPeriods beginning after 6/15/2010Chapter 455 The Hierarchy of Generally Accepted Accounting Principles for State and Local GovernmentsEffective upon issuanceChapter 256 Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing StandardsEffective upon IssuanceChapter 557 OPEB Measurements by Agency Employers and Agent Multiple-Employer PlansPeriods beginning after 6/15/2011 (provisions related to the use and reporting of the alternative measurement method are effective immediately)Chapter 1758 Accounting and Financial Reporting for Chapter 9 BankruptciesPeriods beginning after 6/15/2009Chapter 1559 Financial Instruments OmnibusPeriods beginning after June 30, 2010Chapters 12, 13, 2260 Accounting and Financial Reporting for Concession AgreementsPeriods beginning after December 15, 2011Chapter 1461 The Financial Reporting Entity Omnibus—An Amendment of GASB Statements No. 14 and 34Periods beginning after June 15, 2012Chapter 1162 Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA PronouncementsPeriods beginning after December 15, 2011Chapter 263 Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net PositionPeriods beginning after December 15, 2011Chapter 964 Derivative Instruments: Application of Hedge Accounting Termination Provisions—An Amendment of GASB Statement No. 53Periods beginning after June 15, 2011Chapter 13

EXPOSURE DRAFTS

The GASB has a number of Exposure Drafts that it has issued which will affect future accounting and financial reporting requirements. The following provides a brief synopsis of what is being covered by each Exposure Draft. Readers should always be aware that the GASB often modifies Exposure Drafts based upon its continuing deliberations and consideration of comments that it receives on each Exposure Draft.