O'Reilly logo

Government and Not For Profit Accounting: Concepts and Practices, 6th Edition by Michael H. Granof

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

images

LEARNING OBJECTIVES

After studying this chapter you should understand:

  • Why governments focus on current financial resources and use the modified accrual basis to account for their governmental funds
  • Why governments focus on all economic resources and use the full accrual basis in their government-wide financial statements
  • The key distinctions between the modified and full accrual bases of accounting
  • The distinction between exchange and nonexchange transactions
  • The main types of nonexchange transactions
  • The impact of the “available” criterion on revenue recognition
  • How each of the following types of revenues are accounted for:
    • Property taxes
    • Sales taxes
    • Income taxes
    • Licenses and permits
    • Fines
    • Grants and donations
    • Investment gains and losses
    • Sales of capital assets
    • On-behalf payments

We now turn to what are among the most intriguing questions of government and not-for-profit accounting: when should revenues and expenditures be recognized, and how should the related assets liabilities and deferred inflows and outflows of resources be measured?

In Chapters 4 and 5 we consider revenue and expenditure recognition in governments, and in Chapters 12, 13, and 14 we address revenue and expenditure recognition in not-for-profit entities. Most of the examples in this and the next chapter will implicitly be directed toward governments' general funds. However, the discussion is equally ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required