Governments determine what assets they will record as capital assets by using a capitalization policy, which is sometimes called a capitalization threshold. The purpose of using a capitalization policy is to avoid recording minor, short-lived assets. To determine what assets will be treated as capital assets (regardless of whether it is a capital asset used in governmental or business-type activities or a capital asset of a proprietary fund) in practice, governments typically set monetary and usefullife thresholds for when assets may be considered for capitalization. Read the rest of this entry »

Capital assets are recorded as assets in the government-wide financial statements. (When an asset is referred to as being recorded, it means that the asset as well as accumulated depreciation and depreciation expense, if applicable, are also recorded.) The capital assets recorded in the government-wide financial statements include those used in governmental activities and those recorded for business-type activities. Capital assets relating to any fiduciary funds are not recorded in the governmentwide financial statements. Read the rest of this entry »

Governments often make significant investments in capital assets.

Capital assets are the long-lived assets that require significant investments of resources. They include the assets often referred to as infrastructure assets (roads, bridges, parks, etc.) as well as land, buildings, and equipment. The term is frequently used that the costs of certain assets are “capitalized.” This means that the costs at the time of purchase or construction are recorded as an asset on the statement of net assets or balance sheet rather than being charged to expense in the statement of activities or statement of revenues, expenses, and changes in fund balance. Read the rest of this entry »

? Many grants and other financial aid programs are on a costreimbursement basis, whereby the recipient government “earns” the grant revenue when it actually makes the expenditures called for under the grant. This type of arrangement is described as “expenditure-driven” revenue, since the amount of revenue that should be recognized is directly related to the amount of expenditures incurred for allowable purposes under the grant or other contractual agreement. (Of course, the amount of revenue recognized under a grant or contract should not exceed the total allowable revenue for the period being reported, regardless of the amount of expenditures.) Updating the terminology for GASBS 33, making the expenditure is simply an eligibility requirement. To be eligible Read the rest of this entry »

One of the more important eligibility requirements is the time requirement, where the time period in which a grant is to be spent is specified. For example, if a state government provides formula-based education aid to a local government or a school district and specifies that the aid is for the school year that begins in September and ends in June, that is the period of time for which the grant revenue would be recognized. Few, if any, differences between the modified accrual basis of accounting on
the fund level and the accrual basis of accounting at the government-wide level should arise. Read the rest of this entry »

Grants, entitlements, or shared revenues recorded in the general and special revenue funds should be recognized as revenue in the accounting period in which they become susceptible to accrual (they are measurable and available). In applying these criteria, the financial statement preparer must consider the legal and contractual requirements of the particular financial assistance being considered. Read the rest of this entry »

GRANTS AND OTHER FINANCIAL ASSISTANCE
State and local governments typically receive a variety of grants and other financial assistance. At the state level, this financial assistance may be primarily federal financial assistance. At the local government level, the financial assistance may be federal, state, or other intermediate level of local government. Financial assistance generally is legally structured as a grant, contract, or cooperative agreement. The financial assistance might take the form of entitlements, shared revenues, pass-through grants, food stamps, and on-behalf payments for fringe benefits and salary. What Read the rest of this entry »

Each government’s tax procedures and requirements are different, and different taxes work in different ways, so there is no set of prescribed procedures that can be suggested that will result
in the best method in every case. Nevertheless, there are some general processes and procedures that might prove helpful. Read the rest of this entry »

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The Zennioptical.com has provided so many interesting eyeglasses for them. It has so many fashion eyeglasses styles for them. So, they could get the eyeglasses in there, and also the $ 8 Rx eyeglasses. Some of them even said; I found My favorite high fashion eyeglasses in the site. Read the rest of this entry »

In order to report the derived revenues from the taxes described in the previous paragraphs on the accrual basis of accounting and economic resources measurement focus used in the government-wide financial statements, the government needs to consider the taxes that will be collected after the availability period that is used for reporting these revenues on a modified accrualbasis. The government needs to calculate how much revenue it “earns” during its fiscal year from exchange transactions that occurred during that fiscal year. Read the rest of this entry »