PART IV: STATE AND LOCAL GOVERNMENT ACCOUNTING

In this section

• Chapter 19: Governmental Accounting Fundamentals
  • Fund Structures and Purposes
    Explore the foundations of fund structures, including governmental, proprietary, and fiduciary funds, and understand how each serves accountability objectives in contemporary state and local government accounting.
  • Government-Wide Statements vs. Governmental Funds
    Explore the key differences between government-wide statements and fund-level accounting in state and local government financial reporting, focusing on full accrual versus modified accrual bases.
  • Proprietary and Fiduciary Funds
    Explore the structure and accounting for proprietary (internal service, enterprise) and fiduciary funds (pension, custodial) in governmental accounting, covering measurement focus, financial statements, common pitfalls, and practical examples.
  • Measurement Focus and Basis of Accounting
    Discover the key distinctions between economic resources measurement focus and current financial resources measurement focus in governmental accounting, and learn how basis of accounting impacts recognition of revenues, expenditures, and overall financial analysis.
• Chapter 20: Preparing Governmental Financial Statements
  • Modified Accrual vs. Full Accrual Conversions
    Learn how to effectively convert governmental fund financial statements (using modified accrual) to government-wide statements (using full accrual), focusing on capital assets and long-term liabilities.
  • Budgetary Accounting, Encumbrances, and Lapsing
    Learn how state and local governments handle budgetary accounts, record encumbrances, and manage lapsing vs. nonlapsing appropriations in financial statements.
  • Governmental Fund Statements
    Explore the fundamentals of preparing governmental fund balance sheets and statements of revenues, expenditures, and changes in fund balances—including measurement focus, basis of accounting, and real-world examples.
  • Proprietary and Fiduciary Fund Statements
    Explore the structure, preparation, and reporting requirements of Proprietary and Fiduciary Fund Statements under governmental accounting, including real-world examples, best practices, and essential guidance for CPA exam readiness.
• Chapter 21: Reconciliations and Government-Wide Reporting
  • Common Adjustments (Long-Term Debt, Capital Assets)
    Learn how to reconcile state and local government fund-level financial statements with government-wide statements by adjusting for long-term debt and capital assets, including bond proceeds, principal payments, and capital outlay.
  • Internal Service Funds and Transfers
    Explore how transactions among Internal Service Funds and other governmental funds are eliminated or reclassified in government-wide statements, ensuring accurate presentation and avoiding double counting.
  • Handling Infrastructure and Specific Disclosures
    Learn how state and local governments apply the modified approach for infrastructure assets and navigate specialized disclosures, ensuring transparency and compliance with GASB standards.
  • Reporting Component Units (Discrete and Blended)
    Learn how to identify, classify, and report discrete and blended component units in the ACFR, including key GASB guidance, presentation considerations, disclosures, and best practices.
• Chapter 22: Specialized Transactions and Events
  • Nonexchange Revenues (Taxes, Grants) – Major Categories under GASB
    Learn how to classify and recognize nonexchange revenues, including taxes and grants, under GASB guidelines. Explore imposed and derived tax revenues, eligibility criteria, measurement, and practical illustrations.
  • Net Pension Liability and OPEB
    Explore the comprehensive measurement, recognition, and reporting requirements for Net Pension Liability and Other Post-Employment Benefits (OPEB) under government accounting standards.
  • Interfund Transactions in State and Local Government Accounting
    A thorough overview of reciprocal and nonreciprocal interfund transactions, including interfund services, transfers, reimbursements, and best practices in government accounting.
  • Closing Entries and ACFR Components
    Explore essential steps for closing governmental fund accounts and compiling a robust Annual Comprehensive Financial Report (ACFR), including budgetary reconciliations, fund balance adjustments, and report structuring per GASB guidance.