Problem: GASB Statement 34 is a pretty big deal in government accounting. It mandates that governments' basic financial statements include two separate but related sets of statements.
Question 1. What are these two separate but related sets of statements? What are their different purposes? What is the fundamental difference between the two?
Question 2. We discussed above the different financial statements required for all the types of funds. What financial statements are required for government-wide statements?
Question 3. How does the statement of net assets differ from the balance sheet of a business?
Question 4. How does the Statement of Activities differ from the income statement of a business?
Question 5. Go to the GASB website and look up Concept Statement #4. First what is the difference between a GASB Statement (like Statement 34) and a Concept Statement? What does Concept Statement 4 cover? Summarize briefly and include the link to it please.
Question 6. Let's look at the concepts of restrictions in governmental accounting (it is slightly different in NP accounting). What do we mean by "restrictions"? What are the different GASB categories of restricted net assets? To what statements do these apply?
Question 7. Go to a CAFR. Are there any restricted accounts noted? What are they? Where are they?
Question 8. What is the difference between reserved funds and restricted funds? The book gives some examples of reserved funds...what are they?
Question 9. In your own words, what are internal service funds? Give examples. Look at your CAFR and make a brief statement telling us what type of internal service funds your CAFR uses.
Question 10. Are internal funds classified the same in fund statements as in government wide statements? How are they different?