In short
Interfund transfers are flows of assets between a government's funds without equivalent value in return and without a requirement to repay, such as the general fund sending money to a debt service fund.
Key takeaways
- In governmental funds, they are reported as other financing sources and uses, not revenues or expenditures.
- Interfund loans create receivables and payables; interfund services are revenue to one fund and an expenditure or expense to the other.
- Transfers within governmental activities are eliminated in the government-wide statements.
Where it's tested
BAR: Governmental Fund Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
The general fund lends $100,000 to a special revenue fund, to be repaid in six months. How does the general fund report it?