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What are the five fund balance categories required by GASB 54?

What are the five fund balance categories required by GASB 54?

Statement 54 abandons the reserved and unreserved classifications of fund balance and replaces them with five new classifications: nonspendable, restricted, committed, assigned and unassigned.

What are the 5 classifications of fund balance?

GAAP financial statements report up to five separate categories of fund balance based on the type and source of constraints placed on how resources can be spent (presented in descending order from most constraining to least constraining): nonspendable fund balance, restricted fund balance, committed fund balance.

What is GASB 54?

Fund balance refers to the difference between assets and liabilities in the governmental funds balance sheet. This information is one of the most widely used elements of state and local government financial statements.

Has GASB 54 been superseded?

Issued in November 1994 and superseded by GASB Statements No. 34, 43, 50, 54, 72, 73, and 74. GASB 24, Accounting and Financial Reporting for Certain Grants and Other Financial Assistance. Issued in June 1994.

What is debt service fund?

Debt Service Funds record the accumulation of resources and payment of principal and interest on general long-term obligations and payments on certain lease/purchase or other contractual obligations.

What is an internal service fund?

An Internal Service fund is defined as a fund that primarily provides either benefits or goods or. services to other funds, departments, or agencies of government on a cost-reimbursement basis, with the. goal to ‘break-even’ rather than make a profit.

What are fiduciary funds?

According to the GAAFR (the Blue Book), fiduciary funds are “used to account for resources that a government holds as a trustee or agent on behalf of an outside party that cannot be used to support the government’s own programs.

What is unrestricted fund balance?

The Unrestricted Fund Balance is the difference between the total fund balance and the sum of the nonspendable and restricted fund balances. The Unrestricted Fund Balance is not legally restricted and has three (3) components, committed, assigned and unassigned.

What is the difference between GASB and FASB?

FASB standards, on one hand, are created by the Financial Accounting Standards Board (FASB) and they apply to all public companies. GASB standards, on the other hand, are created by the Governmental Accounting Standards Board (GASB) and they apply to state and local governments.

What are pronouncements in accounting?

Definition. The term Accounting Standards Pronouncements refers to a hierarchy of communications from the Financial Accounting and Standards Board. Generally, these pronouncements consist of Accounting Standards Updates, Statements of Financial Accounting Concepts, and “other” communications.

Is a debt service fund a governmental fund?

There are five main types of government funds, which includes the general fund, the capital projects fund, the permanent fund, the special revenue fund, and the debt service fund.

Under what circumstances are debt service funds used?

Under what circumstances are Debt Service Funds used? Debt Service Funds are used when required by law or if a government is accumulating financial resources for principal and interest payments maturing in future years.