What is Reconciliation of governmental funds to government-wide statements?
In short
Governments reconcile their governmental fund statements, prepared on the modified accrual basis, to the governmental activities column of the government-wide statements, prepared on the full accrual basis.
Key takeaways
- Capital outlays are expenditures in the funds but capital assets, depreciated, government-wide.
- Debt proceeds are an other financing source in the funds but a liability government-wide.
- Internal service funds are usually added in, and long-term accruals such as compensated absences recognized.
Where it's tested
FAR: Governmental Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
How are capital assets and long-term debt reported on the General Fund's balance sheet?