gaafr 9 1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
GAAFR 9.1 PowerPoint Presentation
Download Presentation
GAAFR 9.1

Loading in 2 Seconds...

play fullscreen
1 / 81
risa

GAAFR 9.1 - PowerPoint PPT Presentation

265 Views
Download Presentation
GAAFR 9.1
An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. GAAFR 9.1 CSMFO San Francisco, California Wednesday, February 24, 2011

  2. Overview of Presentation • History of the “Blue Book” • Change in structure and format • Comparison 2005 v. 2011 • Detail on structure of 2011 GAAFR • New GASB guidance incorporated • Contents of individual chapters

  3. History of the “Blue Book” Part 1

  4. National Committee on Municipal Accounting (NCMA) • Established in 1934 • Municipal Finance Officers Association (MFOA) • Later Government Finance Officers Association (GFOA) • First “Blue Book” issued in 1936 • NCMA Bulletin No. 6, Municipal Accounting Statements

  5. National Committee on Governmental Accounting (NCGA) • Founded in 1948 • Second “Blue Book” issued in 1951 • NCGA Bulletin No. 14, Municipal Accounting and Auditing (1951) • Third “Blue Book” issued in 1968 • Governmental Accounting, Auditing, and Financial Reporting • First to bear the GAAFR title

  6. Transition • National Council on Governmental Accounting established in 1974 • Result • Prior to 1974 • “Blue Book” source of authoritative GAAP • After 1974 • “Blue Book” no longer sets GAAP • Focus henceforth on practical application of authoritative standards

  7. MFOA/GFOA • Fourth “Blue Book” issued in 1980 • Fifth “Blue Book” issued in 1988 • Sixth “Blue Book” issued in 1995 • Seventh “Blue Book” issued in 2001 • Eighth “Blue Book” issued in 2005 • Ninth “Blue Book” issued in 2011

  8. Summary of a 75-Year Tradition • 1936 First “Blue Book” • 1951 Second Blue Book • 1968 Third Blue Book (first GAAFR) • 1980 Fourth Blue Book • 1988 Fifth Blue Book • 1995 Sixth Blue Book • 2001 Seventh Blue Book • 2005 Eighth Blue Book • 2011 Ninth Blue Book

  9. Change in Structure and Format Part 2

  10. Changes in Structure • Shorter and more focused chapters • From 19 chapters to 47 chapters • Integrated discussion of accounting and financial reporting • Accounting chapters (e.g., revenue and expenditure recognition in governmental funds) • Financial reporting chapter (e.g., governmental fund financial statements)

  11. Changes in Structure (cont.) • Separate chapters devoted to major topics • Postemployment benefits • Capital assets • Debt • Derivatives • Landfills and pollution remediation • Risk financing and insurance • Other specialized applications

  12. Changes in Structure (cont.) • Study materials • Previously provided in separate GAAFR Study Guide • Now included at the end of each chapter • Summary (“chapter in brief”) • Exercises • Multiple choice • True/false

  13. Change in Format • Current format • Same size as a typical CAFR • To permit reproduction of full-size illustrative CAFR (Appendix D) • New format • Smaller “manual” size • Illustrative CAFR provided on CD-ROM

  14. Comparison 2005 v. 2011 Part 3

  15. GAAFR 2005 • 19 chapters • Introduction to governmental accounting (4) • Accounting (4) • Financial reporting (7) • Budgetary integration and performance measurement (2) • Internal control and auditing (2)

  16. GAAFR 2011 • 47 chapters • Background and framework (8) • Fund accounting and basic financial statements (14) • Specialized accounting applications (8) • Reporting beyond the basic financial statements (11) • Internal control, auditing, and analysis (6)

  17. Detail on Structure of 2011 GAAFR Part 4

  18. Part 1 – Background and Framework • Basic background (3 chapters) • Overview of accounting/financial reporting/auditing cycle • Impact of governmental environment • Sources of authoritative guidance • The Governmental Financial Reporting Model (3 chapters) • Funds and fund types • Government-wide financial reporting • Financial reporting entity

  19. Part 1 – Background and Framework (cont.) • Basic Recognition Principles (2 chapters) • Measurement focus and basis of accounting • Categories of transactions and events and their recognition

  20. Part 2 - Fund Accounting and the Basic Financial Statements • Governmental Funds (5 chapters) • Revenue recognition • Expenditure recognition • Other financing sources/uses • Asset and liability recognition • Financial statements • Proprietary Funds (3 chapters) • Enterprise funds • Internal service funds • Financial statements

  21. Part 2 - Fund Accounting and the Basic Financial Statements (cont.) • Fiduciary Funds (2 chapters) • Trust and agency funds • Financial statements • Government-wide Financial Statements (2 chapters) • Converting and consolidating fund data • Financial statements • Disclosure (2 chapters) • Summary of significant accounting policies • Notes to the financial statements

  22. Part 3 – Specialized Accounting Applications • Specialized Accounting Applications (8 chapters) • Postemployment benefits • Budgetary integration • Capital assets • Debt • Derivatives • Landfills and Pollution remediation • Risk financing and insurance

  23. Part 3 – Specialized Accounting Applications (cont.) • Other specialized applications • Compensated absences • Escheat property • Grants • Investments • Joint ventures and similar arrangements • Lease accounting • Special assessments • Sales and pledges of receivables • Sales and pledges of future revenues • Service concession arrangements • Bankruptcies

  24. Part 4 – Reporting Beyond the Basic Financial Statements • RSI (3 chapters) • Management’s discussion and analysis • Budgetary reporting • Other RSI • The CAFR (2 chapters) • Structure and Contents • The statistical section

  25. Part 4 – Reporting Beyond the Basic Financial Statements (cont.) • Specialized Entities (4 chapters) • Postemployment benefit plans • Public entity risk pools • School districts • States, investment pools, and special-purpose governments • Other Reporting (2 chapters) • Popular reporting • Performance measurement reporting

  26. Section 5 – Internal Control, Auditing, and Analysis • Internal Control (2 chapters) • Comprehensive framework of internal control • Evaluating internal control • Auditing and Analysis (4 chapters) • Financial statement audit • Single Audit • Other types of auditing • Analyzing local government financial statements

  27. Appendices • Glossary • Illustrative Chart of Accounts • Illustrative Journal Entries • Illustrative Trial Balances • Illustrative Conversion/ Consolidation Worksheet • General Index • Illustrative CAFR (CD-ROM)

  28. New GASB GuidanceIncorporated Part 5

  29. Incorporation of New Guidance • Termination benefits • GASB Statement No. 47 • Chapter on postemployment benefits • Sales and pledges • GASB Statement No. 48 • Chapter on other specialized applications • Pollution remediation obligations • GASB Statement No. 49 • Chapter on landfills and pollution remediation

  30. Incorporation of New Guidance (cont.) • Pension disclosure • GASB Statement No. 50 • Chapter on note disclosure • Intangible assets • GASB Statement No. 51 • Chapter on capital assets • Real estate held by endowments • GASB Statement No. 52 • Chapter on specialized applications

  31. Incorporation of New Guidance (cont.) • Derivatives • GASB Statement No. 53 • Chapter on derivatives • Fund balance and governmental fund types • GASB Statement No. 54 • Chapter on fund types • Chapter on governmental fund financial statements

  32. Incorporation of New Guidance (cont.) • GAAP hierarchy • GASB Statement No. 55 • Chapter on sources of GAAP • Guidance incorporated from auditing standards • GASB Statement No. 56 • Chapter on note disclosure • OPEB measurement • GASB Statement No. 57 • Chapter on postemployment benefits

  33. Incorporation of New Guidance (cont.) • Chapter 9 bankruptcies • GASB Statement No. 58 • Chapter on specialized applications • Financial instruments • GASB Statement No. 59 • Chapter on specialized applications • Service concession arrangements • GASB Statement No. 60 • Chapter on specialized applications

  34. Incorporation of New Guidance (cont.) • Financial reporting entity changes • GASB Statement No. 61 • Chapter on financial reporting entity • Codification of applicable private-sector guidance • GASB Statement No. 62 • Chapter on sources of GAAP • References throughout publication

  35. Incorporation of New Guidance (cont.) • Guidance on Medicare Part D • GASB Technical Bulletin 06-1 • Chapter on postemployment benefits • Guidance on calculating the annual required contribution • GASB Technical Bulletin 08-1 • Chapter on postemployment benefits

  36. Contents of Individual Chapters Part 6

  37. Chapter 1 - Overview • Accounting • Financial reporting • Internal • Special-purpose external • General-purpose external • Methods of communicating financial information • GASB Concepts Statement No. 3 • Definition of financial statement elements • GASB Concepts Statement No. 4 • Financial statement audit

  38. Chapter 2 – Impact of the Governmental Environment • Structure of state and local government • Key environmental differences • Profit motive v. service motive • Return on investment v. stewardship • Appropriated budget v. financial plan • Impact of environmental differences • Use of more than one measurement focus • Fund accounting • Budgetary reporting

  39. Chapter 3 – Sources of Governmental GAAP • Nature and purpose of GAAP • Legal authority to set standards • Development of GAAP • Structural framework for standard setting • Due process • GAAP hierarchy • Defining a government • Original pronouncements v. codification

  40. Chapter 4 – Funds, Fund Types, and Interfund Activity • Nature and purpose of fund accounting • Number of funds principle • Fund categories • Fund types • Interfund activity

  41. Chapter 5 – Government-Wide Financial Reporting • Background • Relationship to fund financial statements • From funds to activities • From one measurement focus and basis of accounting to another • From aggregation to consolidation • Focus on direct cost

  42. Chapter 6 – The Primary Government and its Component Units • Overview of the financial reporting entity • The primary government • Identifying component units • Component units v. fiduciary funds • Potential for dual inclusion • Presenting component units • Component units with a different fiscal year end • Transactions v. interfund activity • Separate reporting by component units

  43. Chapter 7 – Measurement Focus and Basis of Accounting • Measurement focus • Effect on statement of position • Effect on statement of resource flows • Basis of accounting • Application to specific sets of financial statements

  44. Chapter 8 – Categories of Transactions and Events • Exchange and exchange-like transactions • Nonexchange transactions • Extraordinary and special items • Direct changes to equity

  45. Chapter 9 – Revenue Recognition in Governmental Funds • Background • General application • Specific applications

  46. Chapter 10 – Expenditure Recognition in Governmental Funds • Background • Basic rule • Exceptions to basic rule

  47. Chapter 11 – Other Financing Sources and Uses • Nature and purpose • Other financing sources • Other financing uses

  48. Chapter 12 – Asset and Liability Recognition and Measurement in Governmental Funds • Background • Governmental fund assets • Governmental fund liabilities

  49. Chapter 13 – Governmental Fund Financial Statements • Focus on major funds • Basic financial statements

  50. Chapter 14 – Enterprise Funds • Differences from private sector • Interest capitalization • Capital asset impairments • Refundings • Compensated absences • Postemployment benefits • Cash flows reporting • Segment reporting • Changes in equity/net assets • Categories of equity/net assets • Transactions unique to the public sector • Connection fees • Impact/developer fees • Regulated industries