​Superficial Drill Down on Governmental Accounting Sheet EighT

​Superficial Drill Down on Governmental Accounting Sheet Eight: 

• A statement of cash flows should be presented for proprietary funds only.
• ​Encumbrance entries are recorded in budgetary accounts to prevent overspending of appropriations and to assure compliance with budget authorizations. 
• For an imposed nonexchange form of tax, assets are recognized in the period when a legal claim has arisen, or when resources are received, whichever occurs first.
• GASB Statement 84 requires additions to be disaggregated and shown by source. Deductions must be disaggregated and shown by type.
• Except for qualifying infrastructure capital assets, governments are required to depreciate all capital assets with limited lives.
• Equipment, facilities, services, and final cover, included in the estimated total current cost, should be reported as a reduction of the accrued liability.
• Derived tax revenues result from taxes assessed on exchange transactions. 
• FASB has jurisdiction over entities with exemption to federal taxation.
• Inflows of assets from other funds without a requirement for repayment are considered interfund transfers.
• The letter of transmittal and the statistical section required for a CAFR and GFOA's certificate are neither basic statements nor required supplemental information.
• The government-wide financial statements consist of a statement of net position and a statement of activities.
• GASB 2200.110 “report information about the overall government without displaying individual funds or fund types”.

​cc: Reporting