[mb0363]

Hey Everyone, I thought I had a good grasp of governmental accounting until i got to Chapter 9.

Chapter 8: I was almost sure that this chapter distinguished that:

Govt. Wide = Proprietary and Fiduciary. ERM. FABA. Operational Acct.

Fund F/S = Governmental. CFRMF. MABA. Fiscal Acct. Current Only.

Chapter 9: Now, I feel like Becker is trying to explain that:

Govt. Wide= Fiduciary excluded, Component Included

Fund F/S = the Governmental, Proprietary, and Fiduciary funds. And Internal Service (Propriety) are lumped with the Governmental Funds.

What is going on here? Can someone explain this to me? This Chapter just seems like a huge mess… Thank you in advance.

BEC - PASS
AUDIT - PASS
REG - PASS
FAR - PASS

[Anonymous]

Let me try to simplify it.

In governmental accounting, you account for things in two ways: 1) Fund accounting 2) Accrual accounting.

Fund accounting has a current measurement focus, and uses modified accrual. Accrual accounting, is, the well, accrual accounting.

For the government as a whole you use accrual. In the government wide FS (GVFS), you use accrual, but you only put on the FS governmental and proprietary funds. You do not put fiduciary funds on the GVFS. They have separate FS.

On the GVFS, you distinguish between governmental activities and business type activities. Governmental activities include governmental fund AND the internal service fund. Business type activities, are all other proprietary funds.

All governmental “funds” use fund accounting as well. But not all governmental “activities” use fund accounting. Do not get confused with governmental “funds” (which are the general, SR, DS, CP, and permanent funds), and governmental “activities” – which are ALL governmental activities that are not run as a business for the public (that includes all governmental fund and the internal service fund).

So the internal service fund, does not use fund accounting, but is presented on the GVFS in governmental activities.

In short: Fund accounting – governmental funds. GVFS – governmental and propetrity funds (governmental and internal service funds are presented together under governmental activities, the other propetrity funds are business activities). Fiduciary funds do not go on the GVFS.

I hope this helps. Good luck with your exam.

[mb0363]

Wow, this is exactly what I needed. I couldn't figure out the connections until now. Thank you SO SO much!!!

BEC - PASS
AUDIT - PASS
REG - PASS
FAR - PASS

[Author]

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