[Mehwish]

Yesterday, I was doing Ninja MCQs, and had 47% on the govt section, so I decided to do some more questions to get better at it. I am at 51% today 🙁

I went through to check what type of questions I was missing, and 90% of them were related to nonexchange transactions regarding how much revenue is recognized and when it should be recognized.

All I know is there are four types of nonexchange transactions

1. Imposed – Revenue recognized when enforceable legal claim exists or resources are received.

2. Derived- Revenue recognized when underlying transaction takes place.

3. Voluntary and Govt Mandated- Recognize revenue when eligibility requirements are met.

Is the criteria same at the fund and entity level? Or is it different?

Sometimes I run into problems with uncollectibles/writeoffs.When should I reduce revenues/receivables by writeoffs?

When does the availability and measurement criteria apply?

Please help, exam is next week.

Thanks.

[Anonymous]

Rev recognition exception – you only accrue for property tax (within 60 days) and restricted grants (when spent) and unrestricted grants (when approved). Otherwise standard recognition for modified accrual applies.

Exchange base Transactions ->

exchange of goods/services w equal value such as purchasing utilities (h2o, gas, electricity…)

Non-exchange base Transactions ->

Derived – self-assessed taxes like sales tax, income tax, gas tax,…

Imposed – taxes not derived from transactions such as property tax or fines

Mandated – restricted grants

Voluntary – unrestricted grants

Write Off example:

Dr. Property Tax Rec.

Cr. Allowance for Uncollectible

Dr. Allowance for Uncollectible

Cr. Property Tax Rec.

Dr. Allowance for Uncollectible

Cr. Revenue

[Future Ninja]

@Mehwish – You're not alone. I got 37% on my first try.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Author]

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