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The next set of statements that are part of the basic financial statements of a government are the fund financial statements. There are fund financial statements for each of the following
types of funds: (more…)
Revenue presentation. Revenues on the statement of activities are distinguished between program revenues and general revenues.
A government’s statement of activities may report extraordinary and special items. Extraordinary items are those that are unusual in nature and infrequent in occurrence. This tracks the private sector accounting definition of this term. (more…)
The reporting of depreciation expense in the statement of activities requires some careful analysis. (Depreciation expense is described in Chapter 7.) Depreciation expense for the following types of capital assets is included in the direct expenses of functions or programs:
• Capital assets that can be specifically identified with a function or program
• Capital assets that are shared by more than one function or program, such as a building in which several functions or programs share office space (more…)
Expense presentation. The statement of activities presents expenses of governmental activities by function in at least the level of detail required in the governmental fund statement of revenues, expenditures, and changes in fund balances (described later in this chapter). Expenses for business-type activities are
reported in at least the level of detail as by segment, which is defined as an identifiable activity reported as (more…)
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The statement of activities is roughly the equivalent of an invoice statement. A better way to view it, however, is as a summary of the transactions (activities) the sum of which roll the beginning net asset number to the ending net asset number reported on the statement of net assets. (more…)
This is the government’s balance sheet. It presents the government’s assets and liabilities as of a specific point in time, which is the government’s fiscal year-end. The difference between the government’s assets and liabilities is known as its net assets. A government’s net assets on the statement of net assets need to be divided into three categories. (more…)
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The government-wide financial statements also include financial information about component units, which are legally separate entities that because of their relation to the government are included in the financial statements of the government. It is not a pure analogy, but component units (which are described in
Chapter 5) are like subsidiaries that are reported in consolidated financial statements of a commercial company. Some component units are called “blended component units.” Their financial activities are treated (more…)