21.GASB specifically requires interest during construction in governments’ funds to be capitalized in the government-wide statements.
22.When preparing government-wide statements, depreciation expense must be eliminated.
23.When converting from governmental fund financial statements to the governmental activities column of the government-wide statements, the proceeds from the sale of capital assets which were listed as an “other financing source” are eliminated and the gain or loss is recorded when preparing the government-wide statements.
24.Assume a government reported $300,000 in capital outlay expenditures in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances. Secondly, assume accumulated depreciation of capital assets amounted to $250,000, in the governmental activities column in the Statement of Activities. Those adjustments would cause a decrease of $50,000 when preparing the reconciliation between the change in governmental fund balances to the change in net positionof governmental activities in the Statement of Activities.
25.Assume a government reported Other Financing Sources - Proceeds of Bonds in the amount of $1,000,000 in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances. When preparing the reconciliation from the changes in fund balances in that statement to the changes in net position in the governmental funds column in the Statement of Activities, an increase of $1,000,000 would be entered.
26.When converting from the enterprise funds Statement of Net Position to the government-wide Statement of Net Position (government-wide statements), it isnot
necessary to add fixed assets and to deduct long-term debt.
27.Few adjustments to internal service funds are necessary when converting from proprietary funds statements to the government-wide statements as internal service funds are generally reported as business-type activities in the government-wide statements.
28.When converting from fund financial statements to government-wide statements, it is necessary to eliminate transfers that are between the categories of governmental activities and business-type activities.
29.An example of a program revenue in the government-wide Statement of Activities would be parks and recreation fees.
30.GASB requires that infrastructure be depreciated on the government-wide statements unless the government chooses to use the modified approach which expenses amounts expended to increase the life of infrastructure.