Preparing Governmental Financial Statements Under the Correct Basis

This chapter covers the mechanics of building governmental statements once the fund framework is understood. BAR emphasizes how modified-accrual information, budgetary accounting, and fund statements fit together in an organized reporting process.

In This Chapter

• Modified Accrual versus Full Accrual Conversions explains the adjustments needed between different reporting views.
• Budgetary Accounting, Encumbrances, and Lapsing covers planning and control entries unique to governmental environments.
• Governmental Fund Statements explains the main statements used for governmental fund reporting.
• Proprietary and Fiduciary Fund Statements covers statement preparation for the other major fund categories.

How to Use This Chapter

• Read this chapter after Chapter 19 so the statement mechanics have context.
• Focus on which accounting basis applies to the statement being prepared.
• Revisit it whenever a BAR problem mixes budgetary entries with formal financial statement presentation.

In this section

• Converting Modified Accrual Information to Full Accrual Reporting
  How BAR converts between modified-accrual and full-accrual governmental reporting views.
• Recording Budgetary Accounting, Encumbrances, and Lapsing Authority
  How BAR handles budgetary accounting, encumbrances, and lapsing in government settings.
• Preparing the Main Governmental Fund Statements
  How BAR prepares and interprets the core governmental fund statements.
• Preparing Proprietary and Fiduciary Fund Statements
  How BAR prepares the major proprietary and fiduciary fund statements.