{"product_id":"government-and-not-for-profit-accounting-isbn-9781119803898","title":"Government and Not-for-Profit Accounting","description":"Government and Not-for-Profit Accounting: Concepts and Practices, 9th Edition delivers a comprehensive exploration of accounting and reporting standards and practices. Fully compliant with the latest changes in the GASB, FASB, and AICPA, this practical text encourages critical thinking about the rationale behind the rules and regulations. Issues of critical importance to the public and not-for-profit sectors are discussed at length. \u003cp\u003ePreface vii\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 The Government and Not- for- Profit Environment 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow Do Governments and Not- For- Profits Compare With Businesses? 2\u003c\/p\u003e \u003cp\u003eIn Practice: Why Is State And Local Government Accounting Important? 6\u003c\/p\u003e \u003cp\u003eWhat Other Characteristics of Governments and Not- For- Profits Have Accounting Implications? 9\u003c\/p\u003e \u003cp\u003eHow Do Governments Compare With Not-For- Profits? 12\u003c\/p\u003e \u003cp\u003eWhat Are The Overall Purposes of Financial Reporting? 14\u003c\/p\u003e \u003cp\u003eWho are The Users, and What are The Uses of Financial Reports? 14\u003c\/p\u003e \u003cp\u003eWhat are The Specific Objectives of Financial Reporting As Set Forth By The GASB and The FASB? 17\u003c\/p\u003e \u003cp\u003eExample: Clash Among Reporting Objectives 19\u003c\/p\u003e \u003cp\u003eDo Differences In Accounting Principles Really Matter? 22\u003c\/p\u003e \u003cp\u003eIn Practice: Will Accounting Changes Make A Difference? 24\u003c\/p\u003e \u003cp\u003eWho Establishes Generally Accepted Accounting Principles? 24\u003c\/p\u003e \u003cp\u003eIn Practice: Assessing the Profitability of An Athletic Program 25\u003c\/p\u003e \u003cp\u003eIn Practice: Governments and Not- For- Profits May Also Be Aggressive In Their Accounting 26\u003c\/p\u003e \u003cp\u003eSummary 29\u003c\/p\u003e \u003cp\u003eKey Terms In This Chapter 30\u003c\/p\u003e \u003cp\u003eQuestions For Review and Discussion 30\u003c\/p\u003e \u003cp\u003eExercises 31\u003c\/p\u003e \u003cp\u003eContinuing Problem 33\u003c\/p\u003e \u003cp\u003eProblems 33\u003c\/p\u003e \u003cp\u003eQuestions For Research, Analysis, And Discussion 37\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Fund Accounting 38\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat is a Fund? 39\u003c\/p\u003e \u003cp\u003eWhat are the Key Elements of Government Financial Statements? 39\u003c\/p\u003e \u003cp\u003eWhat Characterizes Funds? 41\u003c\/p\u003e \u003cp\u003eUse of Multiple Funds to Account for An Entity 44\u003c\/p\u003e \u003cp\u003eBasis of Accounting and Measurement Focus 45\u003c\/p\u003e \u003cp\u003eExample: Fund Accounting in a School District 46\u003c\/p\u003e \u003cp\u003eMajor VS. Nonmajor Funds 49\u003c\/p\u003e \u003cp\u003eHow Can Funds be Combined and Consolidated? 49\u003c\/p\u003e \u003cp\u003eWhat are the Main Types of a Government’s Funds? 59\u003c\/p\u003e \u003cp\u003eWhat’s Notable About Each Type of Governmental Fund? 61\u003c\/p\u003e \u003cp\u003eWhat’s Notable About Each Type of Proprietary Fund? 64\u003c\/p\u003e \u003cp\u003eWhat’s Notable About Each Type of Fiduciary Fund? 70\u003c\/p\u003e \u003cp\u003eWhat is Included in a Government’s Annual Comprehensive Financial Report (ACFR)? 71\u003c\/p\u003e \u003cp\u003eExample: Government-Wide Statement of Activities 74\u003c\/p\u003e \u003cp\u003eHow Do the Funds and Annual Reports of Not-For-Profits Differ From Those of Governments? 75\u003c\/p\u003e \u003cp\u003eSummary 78\u003c\/p\u003e \u003cp\u003eKey Terms In This Chapter 80\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 80\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 81\u003c\/p\u003e \u003cp\u003eExercises 82\u003c\/p\u003e \u003cp\u003eContinuing Problem 85\u003c\/p\u003e \u003cp\u003eProblems 86\u003c\/p\u003e \u003cp\u003eQuestions for Research, Analysis, and Discussion 91\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 92\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Issues of Budgeting and Control 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat are the Key Purposes of Budgets? 96\u003c\/p\u003e \u003cp\u003eWhy is More Than One Type of Budget Necessary? 96\u003c\/p\u003e \u003cp\u003eHow are Expenditures and Revenues Classified? 98\u003c\/p\u003e \u003cp\u003eWhy are Performance Budgets Necessary? 99\u003c\/p\u003e \u003cp\u003eWhat are the Key Phases of the Budget Cycle? 101\u003c\/p\u003e \u003cp\u003eIn Practice: Budgeting In The Midst of a Pandemic 103\u003c\/p\u003e \u003cp\u003eOn What Basis of Accounting are Budgets Prepared? 105\u003c\/p\u003e \u003cp\u003eIn Practice: States Balance Their Budgets the Painless Way 106\u003c\/p\u003e \u003cp\u003eIn Practice: The Cost of GAAP 107\u003c\/p\u003e \u003cp\u003eIn Practice: Balancing the Budget by Selling Assets to Yourself 108\u003c\/p\u003e \u003cp\u003eWhat Cautions Must be Taken in Budget-to-Actual Comparisons? 108\u003c\/p\u003e \u003cp\u003eHow Does Budgeting in Not-For-Profit Organizations Compare with that in Governments? 111\u003c\/p\u003e \u003cp\u003eHow Do Budgets Enhance Control? 112\u003c\/p\u003e \u003cp\u003eWhat are the Distinctive Ways Governments Record Their Budgets? 114\u003c\/p\u003e \u003cp\u003eExample: Budgetary Entries 115\u003c\/p\u003e \u003cp\u003eAn Alternative Method: Crediting or Debiting the Difference Between Revenues and Expenditures to “Budgetary Control” 117\u003c\/p\u003e \u003cp\u003eHow Does Encumbrance Accounting Prevent Overspending? 117\u003c\/p\u003e \u003cp\u003eExample: The Encumbrance Cycle—Year 1 118\u003c\/p\u003e \u003cp\u003eExample: The Encumbrance Cycle—Year 2 120\u003c\/p\u003e \u003cp\u003eExample: Impact of Encumbrances on Fund Balance 121\u003c\/p\u003e \u003cp\u003eAre Budgetary and Encumbrance Entries Really Needed? 124\u003c\/p\u003e \u003cp\u003eSummary 125\u003c\/p\u003e \u003cp\u003eKey Terms in this Chapter 125\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 126\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 126\u003c\/p\u003e \u003cp\u003eExercises 127\u003c\/p\u003e \u003cp\u003eContinuing Problem 131\u003c\/p\u003e \u003cp\u003eProblems 131\u003c\/p\u003e \u003cp\u003eQuestions for Research, Analysis, and Discussion 139\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 139\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Recognizing Revenues in Governmental Funds 141\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy and How Do Governments Use the Modified Accrual Basis? 141\u003c\/p\u003e \u003cp\u003eWhat are the Main Types of Nonexchange Revenues and the Limitations on How and When They Can be Used? 145\u003c\/p\u003e \u003cp\u003eHow Should Property Taxes and Other Imposed Nonexchange Revenues be Accounted for? 146\u003c\/p\u003e \u003cp\u003eI n Practice: In Practice: Just as it did with individuals, corona viruses make some governments\u003c\/p\u003e \u003cp\u003efar more sick than others 146\u003c\/p\u003e \u003cp\u003eExample: Property Taxes 148\u003c\/p\u003e \u003cp\u003eExample: Fines 153\u003c\/p\u003e \u003cp\u003eHow Should Sales Taxes and Other Derived Tax Revenues be Accounted for? 154\u003c\/p\u003e \u003cp\u003eExample: Sales Taxes 154\u003c\/p\u003e \u003cp\u003eExample: Sales Taxes Collected by State 156\u003c\/p\u003e \u003cp\u003eExample: Income Taxes 157\u003c\/p\u003e \u003cp\u003eWhat are Tax Abatements and Why and How Must They be Disclosed? 159\u003c\/p\u003e \u003cp\u003eHow Should Grants and Similar Government-Mandated and Voluntary Nonexchange Revenues be Accounted For? 160\u003c\/p\u003e \u003cp\u003eExample: Unrestricted Grant with Time Requirement 161\u003c\/p\u003e \u003cp\u003eExample: Grant with Purpose Restriction 162\u003c\/p\u003e \u003cp\u003eExample: Reimbursement (Eligibility Requirement) Grant 162\u003c\/p\u003e \u003cp\u003eExample: Unrestricted Grant with Contingency Eligibility Requirement 163\u003c\/p\u003e \u003cp\u003eExample: Endowment Gift 163\u003c\/p\u003e \u003cp\u003eExample: Pledges 163\u003c\/p\u003e \u003cp\u003eExample: Donations of Land for Differing Purposes 164\u003c\/p\u003e \u003cp\u003eExample: On-Behalf Payments 167\u003c\/p\u003e \u003cp\u003eHow Should Sales of Capital Assets be Accounted For? 167\u003c\/p\u003e \u003cp\u003eExample: Sales of Capital Assets 168\u003c\/p\u003e \u003cp\u003eHow Should Licenses, Permits, and Other Exchange Transactions be Accounted for? 169\u003c\/p\u003e \u003cp\u003eExample: License Fees 169\u003c\/p\u003e \u003cp\u003eHow Should Governments Report Revenues in their Government-Wide Statements? 170\u003c\/p\u003e \u003cp\u003eSummary 171\u003c\/p\u003e \u003cp\u003eKey Terms In This Chapter 173\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 173\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 174\u003c\/p\u003e \u003cp\u003eExercises 174\u003c\/p\u003e \u003cp\u003eContinuing Problem 178\u003c\/p\u003e \u003cp\u003eProblems 178\u003c\/p\u003e \u003cp\u003eQuestions for Research, Analysis, and Discussion 184\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 185\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Recognizing Expenditures in Governmental Funds 187\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHierarchical Approach to Transaction Analysis 187\u003c\/p\u003e \u003cp\u003eHow is the Accrual Concept Modified for Expenditures? 189\u003c\/p\u003e \u003cp\u003eHow Should Wages and Salaries be Accounted for? 190\u003c\/p\u003e \u003cp\u003eExample: Wages and Salaries 190\u003c\/p\u003e \u003cp\u003eHow Should Compensated Absences Be Accounted For? 191\u003c\/p\u003e \u003cp\u003eIn Practice: Changing the Pay Date by One Day 191\u003c\/p\u003e \u003cp\u003eExample: Vacation Leave 192\u003c\/p\u003e \u003cp\u003eExample: Sick Leave 193\u003c\/p\u003e \u003cp\u003eExample: Sabbatical Leave 196\u003c\/p\u003e \u003cp\u003eHow Should Pensions and Other Postemployment Benefits Be Accounted For? 197\u003c\/p\u003e \u003cp\u003eExample: Pension Expenditure 197\u003c\/p\u003e \u003cp\u003eHow Should Claims and Judgments Be Accounted For? 198\u003c\/p\u003e \u003cp\u003eExample: Claims and Judgments 198\u003c\/p\u003e \u003cp\u003eHow Should the Acquisition and Use of Materials and Supplies Be Accounted For? 200\u003c\/p\u003e \u003cp\u003eExample: Supplies 200\u003c\/p\u003e \u003cp\u003eHow Should Prepayments Be Accounted For? 203\u003c\/p\u003e \u003cp\u003eExample: Prepayments 203\u003c\/p\u003e \u003cp\u003eHow Should Capital Assets Be Accounted For? 205\u003c\/p\u003e \u003cp\u003eExample: Capital Assets 205\u003c\/p\u003e \u003cp\u003eExample: Installment Notes 206\u003c\/p\u003e \u003cp\u003eExample: Capital Leases 207\u003c\/p\u003e \u003cp\u003eHow Should Interest and Principal on Long-Term Debt Be Accounted For? 208\u003c\/p\u003e \u003cp\u003eExample: Long-term Debt 209\u003c\/p\u003e \u003cp\u003eIn Practice: California School Children May Pay for Their Own Education 210\u003c\/p\u003e \u003cp\u003eHow Should Nonexchange Expenditures be Accounted for? 212\u003c\/p\u003e \u003cp\u003eExample: Unrestricted Grant with Time Requirement 212\u003c\/p\u003e \u003cp\u003eExample: Grant with Purpose Restriction 213\u003c\/p\u003e \u003cp\u003eExample: Reimbursement (Eligibility Requirement) Grant 213\u003c\/p\u003e \u003cp\u003eHow Should Interfund Transactions Be Accounted For? 214\u003c\/p\u003e \u003cp\u003eExample: Interfund Transfer 215\u003c\/p\u003e \u003cp\u003eExample: Interfund Purchase\/Sale 215\u003c\/p\u003e \u003cp\u003eHow Should Revenues, Expenditures, and Other Financing Sources and Uses Be Reported? 218\u003c\/p\u003e \u003cp\u003eIn Practice: Is the Coronavirus Pandemic an Extraordinary or Special Event? 218\u003c\/p\u003e \u003cp\u003eWhat is the Significance of the Current Financial Governmental Fund Statements? An Overview 219\u003c\/p\u003e \u003cp\u003eSummary 220\u003c\/p\u003e \u003cp\u003eKey Terms In This Chapter 221\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 221\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 222\u003c\/p\u003e \u003cp\u003eExercises 223\u003c\/p\u003e \u003cp\u003eContinuing Problem 227\u003c\/p\u003e \u003cp\u003eProblems 227\u003c\/p\u003e \u003cp\u003eQuestions for Research, Analysis, and Discussion 233\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 233\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Accounting for Capital Projects and Debt Service 236\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow do Governments Account for Capital Projects Funds? 237\u003c\/p\u003e \u003cp\u003eExample: Bond Issue Costs 239\u003c\/p\u003e \u003cp\u003eExample: Bond Premiums and Discounts 239\u003c\/p\u003e \u003cp\u003eComprehensive Example: Main Types of Transactions Accounted for in Capital Projects Funds 241\u003c\/p\u003e \u003cp\u003eHow do Governments Account for Resources Dedicated to Debt Service? 245\u003c\/p\u003e \u003cp\u003eComprehensive Example: Main Types of Transactions Accounted for in Debt Service Funds 246\u003c\/p\u003e \u003cp\u003eHow do Governments Handle Special Assessments? 250\u003c\/p\u003e \u003cp\u003eIn Practice: Use and Abuse of Special Assessments 252\u003c\/p\u003e \u003cp\u003eIn Practice: What We Might Learn from “Net Investment in Capital Assets” 256\u003c\/p\u003e \u003cp\u003eWhy is Arbitrage a Concern of Governments? 256\u003c\/p\u003e \u003cp\u003eHow can Governments Benefit from Debt Refundings? 258\u003c\/p\u003e \u003cp\u003eExample: Debt Refundings 258\u003c\/p\u003e \u003cp\u003eExample: In-Substance Defeasance 260\u003c\/p\u003e \u003cp\u003eIn Practice: Current and Advance Refundings 261\u003c\/p\u003e \u003cp\u003eSummary 263\u003c\/p\u003e \u003cp\u003eKey Terms in This Chapter 264\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 264\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 265\u003c\/p\u003e \u003cp\u003eExercises 265\u003c\/p\u003e \u003cp\u003eContinuing Problem 270\u003c\/p\u003e \u003cp\u003eProblems 270\u003c\/p\u003e \u003cp\u003eQuestions for Research, Analysis, and Discussion 277\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 278\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Capital Assets and Investments in Marketable Securities 281\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Accounting Practices Do Governments Follow for General Capital Assets? 282\u003c\/p\u003e \u003cp\u003eAcquiring and Placing Value on Capital Assets 285\u003c\/p\u003e \u003cp\u003eExample: Trade-Ins 285\u003c\/p\u003e \u003cp\u003eWhy and How Should Governments Report Infrastructure? 287\u003c\/p\u003e \u003cp\u003eIn Practice: Nation’s Infrastructure Earns a Cumulative Grade of C-287\u003c\/p\u003e \u003cp\u003eIn Practice: Fair Values May (Or May not) Facilitate Sales Decisions 292\u003c\/p\u003e \u003cp\u003eHow Should Governments Account for Assets that Are Impaired? 294\u003c\/p\u003e \u003cp\u003eExample: Restoration Approach 294\u003c\/p\u003e \u003cp\u003eExample: Service Units Approach 295\u003c\/p\u003e \u003cp\u003eExample: Deflated Depreciated Replacement Cost Approach 296\u003c\/p\u003e \u003cp\u003eWhat Are the Critical Issues with Respect To Marketable Securities And Other Investments? 297\u003c\/p\u003e \u003cp\u003eInvestments Should Be Reported at Fair Values 297\u003c\/p\u003e \u003cp\u003eExample: Investment Income 300\u003c\/p\u003e \u003cp\u003eI n Practice: Some Governments May Make Suboptimal Investment Decisions in Order to Avoid Financial Statement Volatility 301\u003c\/p\u003e \u003cp\u003eExample: Interest Income 303\u003c\/p\u003e \u003cp\u003eIn Practice: One Common-Type Derivative 305\u003c\/p\u003e \u003cp\u003eIn Practice: Investment Debacles 305\u003c\/p\u003e \u003cp\u003eIn Practice: Common Sense Investment Practices 307\u003c\/p\u003e \u003cp\u003eSummary 307\u003c\/p\u003e \u003cp\u003eKey Terms In This Chapter 308\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 308\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 309\u003c\/p\u003e \u003cp\u003eExercises 309\u003c\/p\u003e \u003cp\u003eContinuing Problem 312\u003c\/p\u003e \u003cp\u003eProblems 313\u003c\/p\u003e \u003cp\u003eQuestions for Research, Analysis, and Discussion 320\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 320\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Long-Term Obligations 321\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy is Information on Long-Term Debt Important to Statement Users? 322\u003c\/p\u003e \u003cp\u003eCan Governments and Not-For-Profits Go Bankrupt? 322\u003c\/p\u003e \u003cp\u003eIn Practice: It is not So Easy to Declare Municipal Bankruptcy 323\u003c\/p\u003e \u003cp\u003eHow Do Governments Account for Long-Term Obligations? 325\u003c\/p\u003e \u003cp\u003eExample: Accounting for Bonds in Government-Wide Statements 327\u003c\/p\u003e \u003cp\u003eIn Practice: Valuing a Lottery Prize 328\u003c\/p\u003e \u003cp\u003eWhat Constitutes a Government’s Long-Term Debt? 329\u003c\/p\u003e \u003cp\u003eExample: Demand Bonds 331\u003c\/p\u003e \u003cp\u003eExample: Bond Anticipation Notes 332\u003c\/p\u003e \u003cp\u003eExample: Tax Anticipation Notes 333\u003c\/p\u003e \u003cp\u003eExample: Lessee Accounting 335\u003c\/p\u003e \u003cp\u003eExample: Lessor Accounting 336\u003c\/p\u003e \u003cp\u003eExample: Overlapping Debt 343\u003c\/p\u003e \u003cp\u003eIn Practice: 49Ers Score Big in the Financial Arena 346\u003c\/p\u003e \u003cp\u003eI n Practice: Tobacco Bonds Are Both Risky and Inconsistent with Government Policies 347\u003c\/p\u003e \u003cp\u003eWhat Other Information Do Users Want to Know About Outstanding Debt? 347\u003c\/p\u003e \u003cp\u003eExample: Debt Margin 349\u003c\/p\u003e \u003cp\u003eWhat are Bond Ratings, and Why are They Important? 351\u003c\/p\u003e \u003cp\u003eIn Practice: Bond Ratings 352\u003c\/p\u003e \u003cp\u003eSummary 352\u003c\/p\u003e \u003cp\u003eKey Terms in This Chapter 354\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 354\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 354\u003c\/p\u003e \u003cp\u003eExercises 355\u003c\/p\u003e \u003cp\u003eContinuing Problem 359\u003c\/p\u003e \u003cp\u003eProblems 359\u003c\/p\u003e \u003cp\u003eQuestions for Research, Analysis, and Discussion 365\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 366\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Business-Type Activities 367\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Types of Funds Involve Business-Type Activities? 368\u003c\/p\u003e \u003cp\u003eWhy Do Governments and Not-For-Profits\u003c\/p\u003e \u003cp\u003eEngage in Business-Type Activities? 368\u003c\/p\u003e \u003cp\u003eShould Business-Type Activities be Accounted for Differently than Governmental Activities? 369\u003c\/p\u003e \u003cp\u003eWhat are the Three Basic Statements of Proprietary Fund Accounting? 371\u003c\/p\u003e \u003cp\u003eWhat Accounting Issues are Unique to Enterprise Funds of Governments? 377\u003c\/p\u003e \u003cp\u003eExample: Revenue Bond Proceeds as Restricted Assets 380\u003c\/p\u003e \u003cp\u003eExample: Landfill Costs in an Enterprise Fund 382\u003c\/p\u003e \u003cp\u003eExample: Pollution Remediation Costs in an Enterprise Fund 385\u003c\/p\u003e \u003cp\u003eWhat are Internal Service Funds, and How are they Accounted For? 386\u003c\/p\u003e \u003cp\u003eExample: Internal Service Fund Accounting 390\u003c\/p\u003e \u003cp\u003eIn Practice: Full-Cost Pricing May Encourage Dysfunctional Decisions 392\u003c\/p\u003e \u003cp\u003eAccounting for Insurance Premiums 394\u003c\/p\u003e \u003cp\u003eExample: Insurance Premiums 395\u003c\/p\u003e \u003cp\u003eExample: Self-Insurance in a General Fund 396\u003c\/p\u003e \u003cp\u003eHow are Proprietary Funds Reported? 397\u003c\/p\u003e \u003cp\u003eExample: Eliminating Interfund Balances and Transactions 399\u003c\/p\u003e \u003cp\u003ePPPs and APAs 403\u003c\/p\u003e \u003cp\u003eExample: Public-Private Partnership (PPP) 404\u003c\/p\u003e \u003cp\u003eExample: PPP But Not a SCA 406\u003c\/p\u003e \u003cp\u003eIn Practice: Want to Own a Bridge? 409\u003c\/p\u003e \u003cp\u003eWhat Do Users Want to Know About Revenue Debt? 409\u003c\/p\u003e \u003cp\u003eSummary 411\u003c\/p\u003e \u003cp\u003eKey Terms in This Chapter 412\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 413\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 413\u003c\/p\u003e \u003cp\u003eExercises 414\u003c\/p\u003e \u003cp\u003eContinuing Problem 418\u003c\/p\u003e \u003cp\u003eProblems 418\u003c\/p\u003e \u003cp\u003eQuestions for Research, Analysis, and Discussion 424\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 425\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Pensions and Other Fiduciary Activities 426\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy is Pension Accounting so Important? 426\u003c\/p\u003e \u003cp\u003eIn Practice 428\u003c\/p\u003e \u003cp\u003eHow Do Defined Contribution Plans Differ from Defined Benefit Plans? 429\u003c\/p\u003e \u003cp\u003eIn Practice: Defined Benefit Plans Are More Efficient Than Defined Contribution Plans 430\u003c\/p\u003e \u003cp\u003eIn Practice: Can Defined Benefit Plans Be Saved? 431\u003c\/p\u003e \u003cp\u003eWhat is the Relationship Between An Employer and its Pension Plan? 432\u003c\/p\u003e \u003cp\u003eHow Should the Pension Expense in Full Accrual Statements be Determined? 435\u003c\/p\u003e \u003cp\u003eExample: The Pension Expense 437\u003c\/p\u003e \u003cp\u003eHow Should the Pension Expenditure In Governmental Funds be Determined? 441\u003c\/p\u003e \u003cp\u003eWhat Special Problems Do Multiple-Employer Cost-Sharing Plans Pose? 441\u003c\/p\u003e \u003cp\u003eHow Should The Pension Plan be Accounted for? 442\u003c\/p\u003e \u003cp\u003eWhat Types of Disclosures are Required? 444\u003c\/p\u003e \u003cp\u003eHow Should Post-Employment Benefits Other Than Pensions (OPEB) be Accounted for? 445\u003c\/p\u003e \u003cp\u003eWhat Are Fiduciary Funds? 446\u003c\/p\u003e \u003cp\u003eI n Practice: Difficulty of Determining Whether an Activity is Fiduciary or Governmental 451\u003c\/p\u003e \u003cp\u003eShould Investment Income of A Permanent Fund be Reported in the Permanent Fund Itself or The Beneficiary Fund? 454\u003c\/p\u003e \u003cp\u003eExample: Expendable Investment Income 455\u003c\/p\u003e \u003cp\u003eSummary 455\u003c\/p\u003e \u003cp\u003eKey Terms in This Chapter 457\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 457\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 458\u003c\/p\u003e \u003cp\u003eExercises 458\u003c\/p\u003e \u003cp\u003eContinuing Problem 461\u003c\/p\u003e \u003cp\u003eProblems 461\u003c\/p\u003e \u003cp\u003eQuestions for Research, Analysis, and Discussion 466\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 467\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Issues of Reporting, Disclosure, and Financial Analysis 469\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow Can a Government Prepare Government-Wide\u003c\/p\u003e \u003cp\u003eStatements from Fund Statements? 469\u003c\/p\u003e \u003cp\u003eWhy is the Reporting Entity an Issue for Governments and Not-For-Profits? 471\u003c\/p\u003e \u003cp\u003eExample: The Reporting Entity 472\u003c\/p\u003e \u003cp\u003eWhat Criteria Have Been Established for Government Reporting Entities? 473\u003c\/p\u003e \u003cp\u003eExample: Financially Accountable Component Units 474\u003c\/p\u003e \u003cp\u003eExample: Fiscal Dependency 475\u003c\/p\u003e \u003cp\u003eExample: Blended Component Units 476\u003c\/p\u003e \u003cp\u003eExample: A Closely Affiliated Organization 479\u003c\/p\u003e \u003cp\u003eExample: Application of Current Standards 480\u003c\/p\u003e \u003cp\u003eWhat Other Elements Make Up the Annual Comprehensive Financial Report? 482\u003c\/p\u003e \u003cp\u003eWhat are the Reporting Requirements for Special-Purpose Governments?\u003c\/p\u003e \u003cp\u003e487\u003c\/p\u003e \u003cp\u003eHow Can A Government’s Fiscal Condition be Assessed? 488\u003c\/p\u003e \u003cp\u003eI n Practice: Balanced Budget Requirements Don’t Always Result in Balanced Budgets 497\u003c\/p\u003e \u003cp\u003eDrawing Conclusions 504\u003c\/p\u003e \u003cp\u003eSummary 509\u003c\/p\u003e \u003cp\u003eKey Terms in This Chapter 511\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 511\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 512\u003c\/p\u003e \u003cp\u003eExercises 512\u003c\/p\u003e \u003cp\u003eContinuing Problem 516\u003c\/p\u003e \u003cp\u003eProblems 516\u003c\/p\u003e \u003cp\u003eQuestions for Research, Analysis, and Discussion 520\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 521\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Not-for-Profit Organizations 523\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWho’s in Charge? 523\u003c\/p\u003e \u003cp\u003eWhat Should be The Form And Content of Financial Statements? 524\u003c\/p\u003e \u003cp\u003eIn Practice 526\u003c\/p\u003e \u003cp\u003eWhat Is An Endowment? 527\u003c\/p\u003e \u003cp\u003eReporting Revenues and Expenses 529\u003c\/p\u003e \u003cp\u003eExample: Reporting Revenues and Expenses 530\u003c\/p\u003e \u003cp\u003eReporting Cash Flows 535\u003c\/p\u003e \u003cp\u003eWhat are The Main Types of Contributions, and How Should Pledges Be Accounted For? 538\u003c\/p\u003e \u003cp\u003eIn Practice: Even the Very Wealthy Sometimes Renege on Their Contributions 539\u003c\/p\u003e \u003cp\u003eExample: Pledges 540\u003c\/p\u003e \u003cp\u003eWhen Should Use-Restricted (Purpose-Restricted) Contributions Be Recognized? 542\u003c\/p\u003e \u003cp\u003eExample: Use-Restricted Contributions 542\u003c\/p\u003e \u003cp\u003eIn Practice: A Gift with Strings Attached 543\u003c\/p\u003e \u003cp\u003eShould Noncash Contributions be Recognized? 544\u003c\/p\u003e \u003cp\u003eExample: Noncash Contributions 545\u003c\/p\u003e \u003cp\u003eExample 545\u003c\/p\u003e \u003cp\u003eExample: Examples of Contributed Services 546\u003c\/p\u003e \u003cp\u003eIn Practice 546\u003c\/p\u003e \u003cp\u003eShould Receipts of Collection Items be Recognized As Revenues? 547\u003c\/p\u003e \u003cp\u003eWhen Should Conditional Promises be Recognized? 547\u003c\/p\u003e \u003cp\u003eExample: Conditional Promises 548\u003c\/p\u003e \u003cp\u003eHow Should “Pass-Through” Contributions Be Accounted For? 548\u003c\/p\u003e \u003cp\u003eExample: A Federated Fund-Raising Organization 549\u003c\/p\u003e \u003cp\u003eExample: A Foundation That Transfers Assets to a Specified Organization 549\u003c\/p\u003e \u003cp\u003eExample: A Foundation That Supports a Related Organization 549\u003c\/p\u003e \u003cp\u003eWhen Should Gains and Losses On Investments be Recognized? 551\u003c\/p\u003e \u003cp\u003eExample: Investment Gains 551\u003c\/p\u003e \u003cp\u003eShould Endowment Gains Be Considered Net Additions To Principal Or Expendable Income? 552\u003c\/p\u003e \u003cp\u003eExample: Investment Gains 553\u003c\/p\u003e \u003cp\u003eWhat Are Split Interest Agreements, and How Should They be Accounted For? 554\u003c\/p\u003e \u003cp\u003eHow Should Depreciation Be Reported? 555\u003c\/p\u003e \u003cp\u003eExample: Depreciation 555\u003c\/p\u003e \u003cp\u003eWhat Issues Does A Not-For-Profit\u003c\/p\u003e \u003cp\u003eFace In Establishing Its Reporting Entity? 556\u003c\/p\u003e \u003cp\u003eComprehensive Example: Museum of American Culture 558\u003c\/p\u003e \u003cp\u003eHow Should The Costs of Fund-Raising Activities Be Determined? 566\u003c\/p\u003e \u003cp\u003eCriteria for Allocating A Portion of Costs To Program or Management Functions 566\u003c\/p\u003e \u003cp\u003eExample: Allocating Charitable Costs 568\u003c\/p\u003e \u003cp\u003eHow Can A Not-For-Profit’s Fiscal Condition Be Assessed? 569\u003c\/p\u003e \u003cp\u003eIn Practice: Not-For-Profits, Like Corporations, Tainted by Scandals 571\u003c\/p\u003e \u003cp\u003eSummary 573\u003c\/p\u003e \u003cp\u003eKey Terms In This Chapter 574\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 574\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 577\u003c\/p\u003e \u003cp\u003eExercises 578\u003c\/p\u003e \u003cp\u003eProblems 582\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 586\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Colleges and Universities 587\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Unique Issues do Colleges and Universities Face? 587\u003c\/p\u003e \u003cp\u003eStandards for Public Colleges and Universities 589\u003c\/p\u003e \u003cp\u003eStandards for Private Not-For-Profit Colleges and Universities 590\u003c\/p\u003e \u003cp\u003eAccounting for Revenues and Expenses 597\u003c\/p\u003e \u003cp\u003eIn Practice: Which Set of Standards Do We Follow? 598\u003c\/p\u003e \u003cp\u003eIn Practice: From Public to Private 599\u003c\/p\u003e \u003cp\u003eIn Practice: How Should a University Classify a Gift that May not Be a Gift? 600\u003c\/p\u003e \u003cp\u003eExample: Tuition and Fee Revenues 600\u003c\/p\u003e \u003cp\u003eOther Issues 602\u003c\/p\u003e \u003cp\u003eExample: Grants 603\u003c\/p\u003e \u003cp\u003eExample: Student Loans 604\u003c\/p\u003e \u003cp\u003eIn Practice: How Auxiliary Enterprises Can Be Misused 605\u003c\/p\u003e \u003cp\u003eComprehensive Example: Mars University 606\u003c\/p\u003e \u003cp\u003eEvaluating The Fiscal Wherewithal of Colleges And Universities 610\u003c\/p\u003e \u003cp\u003eIn Practice: Colleges on the Brink 612\u003c\/p\u003e \u003cp\u003eSummary 613\u003c\/p\u003e \u003cp\u003eKey Terms In This Chapter 613\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 613\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 616\u003c\/p\u003e \u003cp\u003eExercises 616\u003c\/p\u003e \u003cp\u003eProblems 619\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 623\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Health-care Providers 625\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIn Practice: Hospitals Face Economic Challenges While Also Implementing Policy Changes 626\u003c\/p\u003e \u003cp\u003eWhat Unique Issues do Health-Care Providers Face? 627\u003c\/p\u003e \u003cp\u003eWhat are the Basic Financial Statements? 628\u003c\/p\u003e \u003cp\u003eHow are Key Revenues and Expenses Recognized? 633\u003c\/p\u003e \u003cp\u003eExample: Patient Care Revenues 634\u003c\/p\u003e \u003cp\u003eExample: Implicit Price Concessions 635\u003c\/p\u003e \u003cp\u003eExample: Capitation Fee Revenues 636\u003c\/p\u003e \u003cp\u003eExample: Charity Care 637\u003c\/p\u003e \u003cp\u003eExample: Malpractice Claims 638\u003c\/p\u003e \u003cp\u003eExample: Retrospective Premiums 639\u003c\/p\u003e \u003cp\u003eComprehensive Example: Medical Center Hospital 639\u003c\/p\u003e \u003cp\u003eHow can the Fiscal Wherewithal of Health-Care Organizations be Evaluated? 645\u003c\/p\u003e \u003cp\u003eIn Practice: Financial Problems not Caused by Single Issue 646\u003c\/p\u003e \u003cp\u003eSummary 648\u003c\/p\u003e \u003cp\u003eKey Terms in This Chapter 649\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 649\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 649\u003c\/p\u003e \u003cp\u003eExercises 650\u003c\/p\u003e \u003cp\u003eProblems 654\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 658\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 Auditing Governments and Not-for-Profit Organizations 659\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow Do Audits Of Governments and Not-For-Profits\u003c\/p\u003e \u003cp\u003eDiffer from Those of Businesses? 660\u003c\/p\u003e \u003cp\u003eHow Has The Yellow Book Influenced Governmental and Not-For-Profit Auditing? 660\u003c\/p\u003e \u003cp\u003eWhat Types of Audits Do Governments Conduct? 662\u003c\/p\u003e \u003cp\u003eWhat Levels of Standards are Applicable To All Engagements? 662\u003c\/p\u003e \u003cp\u003eIn Practice: To Whom Should a City Auditor Report? 663\u003c\/p\u003e \u003cp\u003eWhat are Performance Audits? 667\u003c\/p\u003e \u003cp\u003eKey Differences Between Financial And Performance Audits 667\u003c\/p\u003e \u003cp\u003eIn Practice: Targeting Seemingly Trivial Activities 670\u003c\/p\u003e \u003cp\u003eExample: Evidence Gathering 673\u003c\/p\u003e \u003cp\u003eIn Practice: Findings Must Relate to Program Objectives 674\u003c\/p\u003e \u003cp\u003eHow Have The Single Audit Act and Other Pronouncements Influenced Auditing? 675\u003c\/p\u003e \u003cp\u003eWhat Approach Do Auditors Take In Performing Single Audits? 676\u003c\/p\u003e \u003cp\u003eWhat Reports Result From Single Audits? 679\u003c\/p\u003e \u003cp\u003eWhat Unique Ethical Issues Do Governmental and Not-For-Profit Accounting and Auditing Present? 682\u003c\/p\u003e \u003cp\u003eExample: Ethical Dilemma 684\u003c\/p\u003e \u003cp\u003eSummary 686\u003c\/p\u003e \u003cp\u003eKey Terms In This Chapter 687\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 687\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 688\u003c\/p\u003e \u003cp\u003eExercises 688\u003c\/p\u003e \u003cp\u003eProblems 690\u003c\/p\u003e \u003cp\u003eCases in Ethics 694\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 696\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Federal Government Accounting 697\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhich Agencies are Responsible for Federal Accounting and Reporting? 700\u003c\/p\u003e \u003cp\u003eWhat Constitutes the Federal Budget? 703\u003c\/p\u003e \u003cp\u003eWhat Constitutes the Federal Government Reporting Entity? 705\u003c\/p\u003e \u003cp\u003eWhat are the Form and Content of Government-Wide Federal Statements? 707\u003c\/p\u003e \u003cp\u003eWhat Types of Accounts are Maintained by Federal Entities? 709\u003c\/p\u003e \u003cp\u003eWhat Statements are Required of Federal Agencies? 710\u003c\/p\u003e \u003cp\u003eWhat are Other Key Features of the FASAB Model? 712\u003c\/p\u003e \u003cp\u003eExample: Subsidized Loan 721\u003c\/p\u003e \u003cp\u003eExample: Loan Guarantees 722\u003c\/p\u003e \u003cp\u003eWhat Else Constitutes the Federal Government’s Reporting System 724\u003c\/p\u003e \u003cp\u003eWhat are the Key International Trends in Governmental Accounting? 725\u003c\/p\u003e \u003cp\u003eAn International Standard-Setting Agency 726\u003c\/p\u003e \u003cp\u003eSummary 727\u003c\/p\u003e \u003cp\u003eKey Terms in This Chapter 728\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 728\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 729\u003c\/p\u003e \u003cp\u003eExercises 730\u003c\/p\u003e \u003cp\u003eProblems 733\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 737\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 Managing for Results 739\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Role Do Accountants Play in the Management Cycle of Governments and Not-For-Profits? 740\u003c\/p\u003e \u003cp\u003eHow Can the Limits of Traditional Budgets Be Overcome? 741\u003c\/p\u003e \u003cp\u003eWhat are the Characteristics of Sound Operational Objectives? 743\u003c\/p\u003e \u003cp\u003eWhat are the Perils of Establishing Operational Objectives? 746\u003c\/p\u003e \u003cp\u003eI n Practice: A Classic Case of Reliance on Misspecified Objectives (Two Perspectives of the Vietnam War) 747\u003c\/p\u003e \u003cp\u003eHow Do Program Budgets Relate Expenditures to Operational Objectives? 748\u003c\/p\u003e \u003cp\u003eAdvantages and Disadvantages of Program Budgets 753\u003c\/p\u003e \u003cp\u003eHow Should Service Efforts and Accomplishments Be Reported? 755\u003c\/p\u003e \u003cp\u003eHow are Capital Expenditures Planned and Budgeted Within a Framework of Operational\u003c\/p\u003e \u003cp\u003eObjectives? 762\u003c\/p\u003e \u003cp\u003eExample: Benefits Are Cash Savings 764\u003c\/p\u003e \u003cp\u003eExample: Choosing among Options with Similar Benefits 765\u003c\/p\u003e \u003cp\u003eIn Practice: September 11 Victim Compensation Fund 767\u003c\/p\u003e \u003cp\u003eSummary 769\u003c\/p\u003e \u003cp\u003eKey Terms in This Chapter 770\u003c\/p\u003e \u003cp\u003eExercise for Review and Self-Study 770\u003c\/p\u003e \u003cp\u003eQuestions for Review and Discussion 770\u003c\/p\u003e \u003cp\u003eExercises 771\u003c\/p\u003e \u003cp\u003eProblem 774\u003c\/p\u003e \u003cp\u003eSolution to Exercise for Review and Self-Study 778\u003c\/p\u003e \u003cp\u003eGlossary G-1\u003c\/p\u003e \u003cp\u003eValue Tables VT-1\u003c\/p\u003e \u003cp\u003eIndex I-1\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989305901285,"sku":"NP9781119803898","price":146.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119803898.jpg?v=1761783601","url":"https:\/\/k12savings.com\/es\/products\/government-and-not-for-profit-accounting-isbn-9781119803898","provider":"K12savings","version":"1.0","type":"link"}