[Anonymous]

Hi everyone! I’ve been studying for FAR and came across a few inconsistencies in gov. accounting. can someone please clarify? So far, I’ve come across the following:

1.The governmental entity includes levied taxes in revenue in the year it is enforceable.

2.And then I came across another MCQ that said taxes levied are included in revenue for the year it is meant to be used (for example, tax is levied in 2001, to be used for 2002, then its included in 2002 revenue.)

3.And then I came across another question that said that taxes collected in the first 60 days of the following year can be included in current year revenues and the remaining amounts to be collected in the following year would be part of the following year’s revenues.

Can anyone clarify why the revenue treatment for levied taxes are different?

Thanks.

[shankysays]

Not exactly sure on the first two, but on the third: governmental funds use the current financial resources method, and therefore revenues are recorded when they are both measurable and “available” – which is within 60 days.

BEC - 72, 82! ✓
FAR - 80! ✓
AUD - 70, 92! ✓
REG - 74, 78! ✓

Licensed CPA 5/2015

[Author]

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