government accountingChapter 13D.ppt

Statement of Activities Presentation(continued) Each function or program shown on a separate line with separate sections for Governmental Activities – minimum level of detail derived from Statement of Revenues, Expenditures, and Changes in Fund Balance Current (Operating) Expenditures section Business-Type Activities – minimum level is by identifiable activity Component Units – usually reported on one line but may report by major component unit MFBA – important features MFBA Measurement focus – economic resources Basis of Accounting – accrual Expenses not found on Governmental Fund operating statement reported on Statement of Activities Capital outlay expenditures replaced by depreciation expense Debt service principal payments not reported on Statement of Activities Interest expenditure become interest expense – much broader measure Compensated absences, claims and judgments, pension liabilities not shown as expenditures on fund statements become expenses on this statement Reporting Expenses Reporting direct expenses by function is the minimum requirement for Statement of Activities May allocate indirect expenses among functions – requires use of a separate column (rarely used) Interest Expense generally reported as a separate line [function] but may be as a direct expense if certain requirements are met General rules for reporting Depreciation Expense Direct expense of function responsible for related asset Infrastructure depreciation direct expense of function responsible for maintaining it Depreciation on asset used by all functions need not be allocated Program Revenues vs. General Revenues [See Illustration 13-13 on page 535] Program Revenues generally classified as: Charges for Services Program-specific Operating Grants Contributions Program-specific Capital Grants Contributions May change columnar titles, if appropriate General Revenues include All taxes Other revenues not restricted to particular programs Charges for Services Charges for services always