Reference no: EM13488702
"Property Taxes and Nonexchange Transactions" Please respond to the following:
1. Discuss how property taxes are treated differently in the governmental funds statements as opposed to the governmental wide statements? Do you agree with this treatment? Why or why not?
2. From the first e-Activity, discuss the accounting treatment of nonexchange transactions with a focus on the difference between government-mandated and voluntary nonexchange transactions. Evaluate the potential impact of time restrictions on revenue recognition for nonexchange transactions. Rationalize the difference in time restrictions for mandatory nonexchange reporting and voluntary nonexchange reporting.
3. From the e-Activity, identify the potential issues resulting if Statement No.36 had not been issued by GASB. Assess whether or not GAAP require similar treatment for revenue recognition for nongovernmental entities and provide a rationale for any differences in treatment.
4. Evaluate Statement No. 36 and GAAP revenue recognition requirement. Provide a rationale for the differences in accounting treatment.
"Government Financial Statements" Please respond to the following:
5. From the first e-Activity, note that the GAO could not issue an opinion on the financial statements of the US government. Evaluate how this could occur considering the requirements of OMB Circular
6. What steps would you take to alleviate the internal control problems? Differentiate between the requirements for internal controls in government agencies and those in public companies.
"Expenditures" Please respond to the following:
- Under pressure to balance their budgets, governments at all levels have resorted to fiscal gimmicks, such as delaying the wages and salary of government employees from the last day of the month to the first day of the following month. In the year of the change, they thereby had one fewer period to pay.
7. Determine how such a change would affect the reported expenditures of a governmental fund under GAAP. Provide specific examples to support your response.
- Evaluate the impact of GASB Interpretation No.6, Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements on the accrual and payment of the salaries.
"Municipal Securities" Please respond to the following:
9. From the first e-Activity, evaluate the effect the GASB on the municipal securities market. Considering the credit crisis, as an investor, assess whether or not you would place more reliance on the analyst's report or the disclosures in the financial statements if they were prepared in accordance with GASB requirements?
10.Assume the government of the town or city in which you live has earned a return on its pension fund portfolio that far exceeds the average earned by other governments. Determine whether the government where you live should be concerned about this high rate of return or not. Explain your rationale.
"Capital Assets" Please respond to the following:
11. From the second e-Activity, examine the purpose for the issuance of "Statement of Federal Financial Accounting Standards (SFFAS) No. 40" and determine if you agree or not.
12. Evaluate the potential problems that can exist when comparability of asset conditions cannot be made within an agency and with other agencies. Suggest how these problems may be minimized.