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Introduction to Governmental and Not-for-Profit Accounting, Sixth Edition

by Martin Ives; Laurence Johnson; Joseph R. Razek; Gordon A. Hosch

Publisher: Prentice Hall

Publishing Date: 2008/02/21

eText ISBN-10

0-13-236638-X

eText ISBN-13

978-0-13-236638-0

Print ISBN-10

0-13-236635-5

Print ISBN-13

978-0-13-236635-9

Table of Contents

About the Authors, xvii

Chapter 1. Governmental and Not-for-Profit Accounting Environment and Characteristics, 1

Governmental and Not-for-Profit Organizations, 2

Governmental and Not-for-Profit Entity Environment, 3

Users and Uses of Accounting Information, 6

Accounting Principles and Standards, 6

Objectives of Financial Reporting, 9

Unique Accounting and Financial Reporting Characteristics, 10

Chapter 2. The Use of Funds in Governmental Accounting, 14

Fund Accounting, 15

Measurement Focus and Basis of Accounting, 18

Governmental-Type Funds, 24

Proprietary-Type Funds, 31

Fiduciary-Type Funds, 37

Chapter 3. Budgetary Considerations in Governmental Accounting, 55

Budget Laws, 57

Types of Budgets, 57

Approaches to Budgeting, 58

The Budget Process, 60

Service Efforts and Accomplishments, 69

Budgetary Review, 69

The Budget Document, 71

Legislative Consideration and Adoption of the Budget, 72

Property Tax Levy, 73

Using Budgetary Information, 74

Classifying Revenues and Expenditures, 76

Budgetary Accounting, 79

Additional Aspects of Budgetary Accounting, 87

Closing Comments, 89

Chapter 4. The Governmental Fund Accounting Cycle An Introduction to General and Special Revenue Funds, 100

Recognizing Revenues and Expenditures, 103

Illustrating the General Fund Accounting Cycle, 103

Control Accounts and Subsidiary Ledgers, 117

Closing Comments, 118

Chapter 5. The Governmental Fund Accounting Cycle Additional Transactions of General and Special Revenue Funds—Introduction to Permanent Funds, 136

Property Tax Accounting, 138

Accounting for Other Taxes and Intergovernmental Grants, 146

Important Exceptions to the General Principle for Recognizing Expenditures, 147

Fund Balance Presentation, 149

Interfund Activity, 152

Additional Aspects of Budgetary Accounting, 155

Other Issues, 158

Review of Year-End Financial Statements, 161

Permanent Funds, 162

Chapter 6. The Governmental Fund Accounting Cycle Capital Projects Funds, Debt Service Funds, and Special Assessments, 195

Measurement Focus and Basis of Accounting, 197

Capital Projects Funds, 198

Debt Service Funds, 210

Leased Assets, 217

Special Assessment Projects, 219

Concluding Comment, 222

Chapter 7. The Governmental Fund Accounting Cycle Proprietary-Type Funds, 241

Specific Aspects of Internal Service Funds, 244

Specific Aspects of Enterprise Funds, 253

Chapter 8. The Governmental Fund Accounting Cycle Fiduciary Funds, 279

Overview of Employer Government Pension Accounting, 281

Fiduciary-Type Funds: Pension Trust Funds, 286

Fiduciary-Type Funds: Investment Trust Funds, 298

Fiduciary-Type Funds: Private Purpose Trust Funds, 303

Fiduciary-Type Funds: Agency Funds, 308

Chapter 9. Reporting Principles and Preparation of Fund Financial Statements, 325

Financial Reporting Objectives (GASB Concepts Statement No. 1), 327

Introduction to the Financial Reporting Model (GASB Statement No. 34), 328

The Financial Reporting Entity (GASB Statement No. 14), 329

Overview of the Comprehensive Annual Financial Report, 333

Minimum External Financial Reporting Requirements, 336

Preparing Management’s Discussion and Analysis, 337

Preparing Fund Financial Statements: General, 338

Preparing Fund Financial Statements for Governmental Funds, 340

Preparing Fund Financial Statements for Proprietary Funds, 346

Preparing Fund Financial Statements for Fiduciary Funds, 349

Preparing Budgetary Comparison Schedules, 351

Preparing Notes to the Financial Statements, 353

Preparing the Statistical Section, 356

Auditor’s Report, 359

Chapter 10. Government-Wide Financial Statements, 379

Format of Government-Wide Financial Statements, 381

Preparing Government-Wide Financial Statements, 388

Creating Government-Wide Financial Statements from Fund Financial Data: Comprehensive Illustration, 396

Capital Assets, Including Infrastructure Assets, 406

Chapter 11. Federal Government Accounting and Reporting, 419

The Federal Budgetary Process, 420

Federal Accounting—Background, 422

Consolidated U.S. Government Financial Statements, 427

Accounting Within the Federal Agencies, 430

Federal Agency Financial Reporting Requirements, 437

Chapter 12. Accounting for Not-for-Profit Organizations, 452

Characteristics of Not-for-Profit Organizations, 453

Financial Reporting, 455

Contributions Other Than Services and Collections, 462

Contributed Services, 468

Contributions to Collections, 469

Other Accounting Matters, 470

Fund Accounting in NFPOs, 474

Illustration Using Funds, 476

Appendix 12A Not-for-Profit Colleges and Universities, 497

Chapter 13. Accounting for Health Care Organizations, 502

Health Care Service Providers, 504

Introduction to Hospital Accounting and Financial Reporting, 504

Patient Service Revenues, 507

Investment Income, Other Revenues, Gains, 514

Other Transactions, 519

Accounting for Transactions with Restrictions, 521

Financial Statements, 527

Chapter 14. Analysis of Financial Statements and Financial Condition, 553

Information Content of Financial Statements: A Financial Analysis Perspective, 555

An Approach to Financial Statement and Financial Condition Analysis, 557

Financial Statement and Financial Condition Analysis Indicators, 560

Financial Condition Assessment, 567

Illustration of Analysis of Governmental Financial Statements, 570

Illustration of Analysis of Not-for-Profit Hospital Financial Statements, 577

Chapter 15. Fundamentals of Accounting, 592

The Accounting Equation: Transaction Analysis, 593

The Accrual Basis of Accounting, 601

Recording Transactions: Debits and Credits, 603

Financial Statements, 616

Closing the Books, 620

Other Transactions and Other Matters, 622

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