GASB Statement 34 and Reporting of Expenditures and General Capital Assets Provi
ID: 2330462 • Letter: G
Question
GASB Statement 34 and Reporting of Expenditures and General Capital Assets
Provide complete answers to the following:
What conditions must be satisfied in order to use the modified approach for recording infrastructure?
With regard to the government-wide statements, indicate the three categories of Net Position that should be reported, and describe what would be put into each category.
With regard to the government-wide statements, distinguish between program revenues and general revenues. List three examples of each. What is the difference in reporting between program revenues and general revenues
Explanation / Answer
1.Below are the conditions which must be satisfied in order to use the modified approach for recording infrastructure-
2)Below are the three categories of net postion-
Net investment in capital assets-Capital assets less accumulated depreciation, Balances of debts,bonds or any borrowing relating to acquistion /construction or improvement of those assets.
Restricted- Restricted assets less liabilities and deferred inflows.
Unrestricted -Its the amount which is not included in the above two categories.
3)Program Revenues are the revenues generated from the specific or particular whereas General revenues are not attributed any particular programs.
Examples of Program Revenues- Capital and operating grants, Capital and operating contracts, Revenue for services.
Examples of General Revenues- Taxes, Grants and contracts not related to any programs, interest revenue.
Reporting of Program Revenue- It is subtracted from the functional expense in the Statement of Activities to arrive at net expenses (revenues).
Reporting of General Revenue- It is deducted from net expenses (revenues) to get the change in net assets in the Statement of Activities.
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