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Governmental Financial

Statement Analysis
Who uses S & L Government
financial statements?
Citizen Groups
Legislative oversight officials
Investors and Creditors

The Public Finance Market

Primary (Original Issues)
Secondary (Existing issues)
Financial Statement Analysis
State and Local Governments
Net Debt Per Capita: LTD/population
LTD is adjusted by amount available
Net Debt Per Fair Value of Property
LTD/Fair Value of Property
Interest Coverage: Enterprise Funds
Operating Income/Interest Charges
Debt Service/Total Revenues
Debt Service Exp/Total Revenues
Accounting for Special
Purpose Government Entities
General Purpose Governments
State and local governments that provide
multiple services
Follow accounting as we have studied
Chapters 2-8
Special Purpose Governments
Limited, sometimes one type of service
Fire protection, Library, Public Schools
Accounting Blips-Special
Purpose Funds
Categories as to activities
Single governmental activity
Combined G-W and Fund Financial Statements
More than one governmental activity
GASB 34 to include G-W and Fund Statements
Both governmental and business-type
GASB 34 and 35; G-W and Fund Statements
Only business-type activities (GASB 34-35)
Only Fiduciary Activities (GASB 34)
Public Colleges and Universities
Pre-GASB 35
AICPA Model or S & L Government Model
GASB 35 amends GASB 34 to include
Public Colleges and Universities in S & L
Government category
Same implementation dates
Reporting Categories
Only governmental activities
Both governmental and business-type
Only business-type activities
Accounting Notes-Public C & U
Most will probably report as entities engaged
only in business-type activities
Accrual basis of accounting and economic
resources measurement focus
Net Assets
Invested in Capital Assets, net of related debt
Restricted (Expendable and Nonexpendable)
Capital assets and Infrastructure reported same
as GASB 34
Foundations are often set up to manage
restricted assets
Public C and U Continued
Tuition discounts and scholarships for which
no work is performed reported as revenue
Statement of Net Assets broken down into
current and non-current assets and liabilities
similar to FP business
Operating Income is distinctively displayed on
Statement of R, E, and Changes in Net
Non-operating revenue includes State
appropriations, Gifts, and Investment Income
Cash Flow Statement is similar to B-T GASB