1 / 81

GAAFR 9.1

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

risa
Télécharger la présentation

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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

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

More Related