[JT]

My understanding of property tax revenue (imposed) is that on the governmental fund f/s, it is recognized when available and measurable so it’s when collected plus 60 days.

On the govt wide f/s, it is recognized when levied (net of anticipated uncollectible amounts).

Correct?

In that case why is answer c and not b?

Property taxes levied in fiscal year Year 1 to finance the general fund budget of fiscal year Year 2 should be reported as general fund revenues in fiscal year Year 2:

a. For the amount collected in fiscal year Year 2 only.

b. Regardless of the fiscal year in which collected.

c. For the amount collected before the end of fiscal year Year 2 or shortly thereafter.

d. For the amount collected before the end of fiscal year Year 2 only.

Is the question asking about the fund f/s? Or is my understanding of the concept of property tax recognition completely wrong?

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[Trele6]

You have answered your question with your own understanding.

“My understanding of property tax revenue (imposed) is that on the governmental fund f/s, it is recognized when available and measurable so it's when collected plus 60 days.”

Answer b violates the 60 day rule. If it were to be collected in May that is way more than 60 days past yearend so you would not recognize that revenue.

Plus these taxes are for year 2, very important piece, you wouldn't recognize anything in year 1 if the taxes only relate to year 2.

First go at the CPA! Only using Becker
Reg / Nov 2015 - 87
Far / Apr 2016 - 79
Bec / May 2016 - 80
Aud / Aug 2016

[JT]

So part of my question had to do with what f/s the question is asking about.

If its about the govt-fund f/s then its c, but if its the govt-wide f/s then its b. Correct?

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[Trele6]

That sounds correct since Govt-wide is full accrual and you recognize revenue different than the modified accrual for GRASPP funds

First go at the CPA! Only using Becker
Reg / Nov 2015 - 87
Far / Apr 2016 - 79
Bec / May 2016 - 80
Aud / Aug 2016

[Author]

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