Governmental Accounting Made Easy

For laypeople and accountants with little or no governmental accounting experience, Governmental Accounting Made Easy, Second Edition is a complete and easy-to-use road map to a broad range of governmental accounting topics, and how these individual aspects of governmental accounting work together under the financial reporting model for governments adopted by the Governmental Accounting Standards Board. Read, interpret, and analyze governmental financial statements Governmental Accounting Made Easy, Second Edition explains everything you need to know. With an entirely new chapter on accounting for OPEB benefits, the Second Edition offers just-the-basics coverage of: Basic accounting concepts underlying all governmental accounting and financial reporting Basic financial statements prepared by governments, including government-wide financial statements and fund financial statements Note disclosures that accompany governmental financial statements Complicated accounting issues commonly found in governmental financial statements Background and definition for understanding the reporting entity Accounting requirements for revenues from non-exchange transactions Recording and valuing capital assets Now with new coverage of accounting for pollution remediation obligations, asset impairment, and asset classification, as well as revised and expanded discussion of pension reporting and sales and pledges of receivables and future revenues, Governmental Accounting Made Easy, Second Edition is the most helpful single-source reference you will find. Whether you are a manager, budget preparer, state legislator, comptroller, lawyer, bond counsel, underwriter of municipal bonds, rating agency employee, bond insurer, contractor, or a member of a school board or city council Governmental Accounting Made Easy, Second Edition offers a wealth of practical information for putting accounting principles to work for your organization.

For laypeople and accountants with little or no governmental accounting experience, Governmental Accounting Made Easy, Second Edition is a complete and easy-to-use road map to a broad range of governmental accounting topics, and how these individual aspects of governmental accounting work together under the financial reporting model for governments adopted by the Governmental Accounting Standards Board.Read, interpret, and analyze governmental financial statements--Governmental Accounting Made Easy, Second Edition explains everything you need to know. With an entirely new chapter on accounting for OPEB benefits, the Second Edition offers just-the-basics coverage of:* Basic accounting concepts underlying all governmental accounting and financial reporting* Basic financial statements prepared by governments, including government-wide financial statements and fund financial statements* Note disclosures that accompany governmental financial statements* Complicated accounting issues commonly found in governmental financial statements* Background and definition for understanding the reporting entity* Accounting requirements for revenues from non-exchange transactions* Recording and valuing capital assetsNow with new coverage of accounting for pollution remediation obligations, asset impairment, and asset classification, as well as revised and expanded discussion of pension reporting and sales and pledges of receivables and future revenues, Governmental Accounting Made Easy, Second Edition is the most helpful single-source reference you will find.Whether you are a manager, budget preparer, state legislator, comptroller, lawyer, bond counsel, underwriter of municipal bonds, rating agency employee, bond insurer, contractor, or a member of a school board or city council--Governmental Accounting Made Easy, Second Edition offers a wealth of practical information for putting accounting principles to work for your organization.

Preface ixChapter 1 Introduction and Background 1What Are Generally Accepted Accounting Principles? 1Who Sets Generally Accepted Accounting Principles for Governments? 5Do Governments Need to Comply with Generally Accepted Accounting Principles? 9Why Is Governmental Accounting and Financial Reporting Different from Commercial and Not-for-Profit Accounting and Financial Reporting? 10To What Entities Do Governmental Generally Accepted Accounting Principles Apply? 15Chapter 2 Basic Governmental Accounting Concepts 19Understanding the Different Bases of Accounting 20Understanding What Measurement Focuses Are Used by Governments 26Defining and Understanding the Nature of Assets 29Defining and Understanding the Nature of Liabilities 43Defining and Understanding the Nature of Net Assets 49Chapter 3 Understanding Fund Accounting 55Fund Fundamentals 56Governmental Funds 58Proprietary Funds 75Fiduciary Funds 82Chapter 4 Basics of Governmental Financial Statements 89General-Purpose Financial Statements 90Management's Discussion and Analysis 90The Basic Financial Statements 94Required Supplementary Information 137Comprehensive Annual Financial Report 139Chapter 5 Understanding the Reporting Entity 147Background 148Accountability Focus 149Financial Reporting Entity Defined 150Display of Component Units 161Chapter 6 Revenues from Nonexchange Transactions 169Classes of Nonexchange Transactions 170Accounting Requirements 172Property Taxes 175Income and Sales Taxes, and Other Derived Tax Revenues 177Adjustments for the Accrual Basis of Accounting 180Grants and Other Financial Assistance 182Chapter 7 Capital Assets 187Where Are Capital Assets Recorded in the Financial Statements? 188Recording and Valuing Capital Assets 189Understanding Depreciation 193Using the Modified Approach in Lieu of Depreciating Infrastructure Assets 197The Basics of Capitalized Interest 200Capital Assets Resulting from Capital Lease Transactions 206Intangible Assets 215Impairments of Capital Assets 217Chapter 8 Accounting for Pensions and Other Postemployment Benefits 225Requirements for Defined Benefit Pension and OPEB Plans 229Calculation of the ARC 232Parameters for Actuarial Calculations, Including the ARC 233Net Pension or OPEB Obligation 242Recording Pension- and OPEB-Related Assets, Liabilities, and Expenditures/Expenses 243Pension and OPEB Disclosures 245Employers with Defined Contribution Plans 246Chapter 9 Sundry Accounting Topics 249Accounting for Investments 249Reporting Unrealized Gains or Losses 252Investment and Deposit Disclosures 253Compensated Absence Accruals 255Landfill Closure and Postclosure Care Costs 262Derivatives, Including Interest Rate Swaps 269Securities Lending Transactions 281Chapter 10 Upcoming Developments in Governmental Accounting 287Pension (and OPEB) Accounting--Revisited 288Index 293