Governmental and Nonprofit Accounting
Editorial Reviews
Book Description
The past several years have brought dramatic changes in governmental accounting and financial reporting: In June 1999, the Governmental Accounting Standards Board (GASB) issued the most significant government accounting standards in over 65 years. The principal standard, GASB Statement 34, "Basic Financial Statements-and Management's Discussion and Analysis for State and Local Governments," requires governments to use a new financial reporting model that incorporates government-wide, revenue- and expense-based financial statements alongside improved traditional fund financial statements. Depending on their size, governments must apply Statement 34 as early as years ending after June 15, 2002. The GASB continues to develop related standards and implementation guides even as the first governments prepare financial statements under the new financial reporting model. The Financial Accounting Standards Board (FASB) recently instituted major changes in financial reporting by nongovernment not-for-profit entities through two major pronouncements Statements of Financial Accounting Standards (SFASs) 116 and 117. In 2002 the US, General Accounting Office issued a far-reaching new "independence" standard. This is the dynamic and challenging environment students face as they learn this new accounting discipline and as they enter professional careers in the near future. To address these changes and help students succeed, we use what we call an "evolutionary approach to revolutionary change." This sound and logical approach incorporates both new features and tried-and-true elements of this text. Those who have been involved in governmental and not-for-profit accounting for some time will find many familiar elements in this text, including: updated coverage of fund accounting and reporting built upon proven pedagogical methods governmental funds with the same accounting equation and essentially the same financial statements as before GASB Statement 34 modified accrual accounting for governmental funds and accrual accounting for proprietary funds and trust funds You will also find many noteworthy differences, including: logical, incisive coverage of the new reporting model instituted by GASB Statement 34, including a practical, understandable approach to deriving the new government-wide financial statements from the fund information coverage of two new fund types as well as new definitions of some other fund types government-wide financial statements, as well as newly revised fund financial statements new presentations of proprietary fund equity and operations major fund reporting and government-wide reporting explanation and illustration of how governments derive the information reported in government-wide financial statements without maintaining two sets of records updated material that incorporates the relevant portions of all authoritative pronouncements issued through 2002 (including GASB Statement 39 on affiliated organizations, Statement 38 on note disclosures; Statement 37, which amends several Statement 34 requirements; Statement 35, which requires government colleges and universities to apply Statement 34; and Interpretation 6 on governmental fund accounting and financial reporting) We have thus retained the successful approach, comprehensiveness, and other strengths that have long been hallmarks of this text. In addition, we have further refined and improved the emphasis on the foundational aspects of governmental accounting and financial reporting such as the nature and purposes of the various accounting entities and the unique approach for teaching the state and 'local government accounting and reporting model that has proven so successful. MAJOR CONTENT CHANGES The seventh edition of the text incorporates these pervasive changes in government financial reporting. The most dramatic changes in the text are found in the financial reporting chapters. Particularly noteworthy changes in the text include: Chapter 2, State and Local Government Accounting: Concepts, Objectives, and Principles. Several of the principles of governmental accounting changed as a result of GASB Statement 34. These changes, particularly in fund types and fund type definitions, classification and treatment of interfund transactions, and financial reporting requirements, are introduced in this chapter. Chapter 4, General and Special Revenue Funds. Although very similar to the previous edition overall, this chapter has been revised to reflect changes in budgetary reporting, accounting for and reporting interfund transactions, and new reporting classifications in the governmental fund operating statement. Chapter 5, Revenue Accounting Governmental Funds. This chapter incorporates GASB Statement 33, "Accounting for Nonexchange Transactions." Chapter 6, Expenditure Accounting Governmental Funds. This chapter builds on earlier discussions of GASB Interpretation 6. Chapter 9, General Capital Assets; General Long-Term Liabilities; Permanent Funds: Introduction to Interfund-GCA-GLTL Accounting. This chapter is revised to be consistent with the new terminology used for general capital assets and general long-term liabilities. It also is revised to explain and illustrate one way that governments can capture and maintain the information on these assets and liabilities required for government-wide financial reporting. Finally, the chapter explains the new requirements on reporting general government infrastructure capital assets, as well as the modified approach permitted for accounting for these assets. Chapter 10, Enterprise Funds. This and the following two chapters have been reordered to present information in a sequence and manner that is most consistent with the new financial reporting requirements. Chapter 10 explains the new definition of Enterprise Funds and the changes in Enterprise Fund reporting particularly the changes in the reporting of fund equity and the presentation of operating statement information. Chapter 12, Trust and Agency (Fiduciary) Funds: Summary of Interfund-GCA-GLTL Accounting. This chapter explains and illustrates the nature, definitions, and reporting of the new fiduciary fund types. The changes are significant. Chapter 13, Financial Reporting: The Basic Financial Statements. This and the following two chapters explain and illustrate financial reporting requirements, financial reports, and deriving government-wide financial statement data under the requirements of the new reporting model. These chapters are critical to students' understanding of the new financial reporting model and of government financial reporting in this new era. They provide an effective and efficient vehicle for students to gain an in-depth understanding of the basic financial statements required by Statement 34, how to derive the government-wide statement data using the fund accounting and reporting knowledge gained in their study of the first 12 chapters, and the requirements for a Comprehensive Annual Financial Report. Chapter 13 is a new chapter that discusses and illustrates the basic financial state menu required by Statement 34 and explains the requirements for the notes to the financial statements and for Management's Discussion and Analysis and other required supplementary information. This chapter explains the unique aspects of fund financial statements and of government-wide financial statements in depth. Chapter 14, Financial Reporting: Deriving Government-Wide Financial Statements and Required Reconciliations. This is another new chapter. In practice, governments capture most of the information required for preparing fund financial statements in their accounts. Data for reporting the government-wide financial statements are derived through a yearend conversion process that uses the data in the fund financial statements as a starting point. Government-wide financial statement data typically is not captured directly in the accounts. To convert fund financial statement data to government-wide financial statement data requires a sound understanding of both fund financial statements and government-wide financial statements, which is why we cover the government-wide statements in Chapter 13 before deriving the statement data in this chapter. Chapter 14 is more than a "how-to" chapter. The chapter explains and illustrates the differences between fund reporting and government-wide reporting that must be addressed to derive government-wide financial statement data. It also discusses and diagrams the process required so that students understand the reasons for and context of each step in the process. Chapter 15, Financial Reporting: The Comprehensive Annual Financial Report and the Financial Reporting Entity. This chapter completes the coverage of state and local government financial reporting by explaining the components and requirements for a Comprehensive Annum Financial Report. It also addresses financial reporting when a government has component units and how to determine whether another entity should be treated as a component unit in a government's financial statements. GASB Statement 39 on affiliated organizations is discussed in this chapter. Chapter 16, Non-SLG Not-For-Profit Organizations: SFAS 116 and 117 Approach. This chapter covers nongovernment not-for-profit organization accounting and reporting in the context of voluntary health and welfare organizations and other nonprofit organizations. It covers the requirements of FASB Statements 116 and 117 on not-for-profit accounting and has been updated for recent changes, including FASB Statement 136 on accounting for transfers of assets to not-for-profit entities that raise contributions for others. Chapter 16 was moved to precede the chapters on college and university accounting and hospital accounting, which have both government and nongovernment not-for-profit counterparts. This arrangement permits us to cover both government and nongovernment not-for-profit reporting requirements for colleges and universities and for hospitals in a concise manner. Chapter 17, Accounting for Colleges and Universities. Th...
Book Info
Focuses on the most important of the concepts, standards and procedures applicable to state and local, federal governments, and nonprofit government universities, hospitals, and welfare organizations. Covers the June 1999 GASB Statement 34. DLC: Municipal finance--U.S.--Accounting.
--This text refers to an out of print or unavailable edition of this title.
Governmental and Nonprofit Accounting
Governmental and Nonprofit Accounting,Robert J. Freeman,Craig D. Shoulders,Prentice Hall,0130661910,Accounting,Accounting - General,Accounting - Governmental,Business & Economics,Business / Economics / Finance,Business/Economics,Finance, Public,Fund Accounting,Local finance,Municipal finance,Public Accounting,United States,Business & Economics / Accounting / General
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