Question :
Under pressure to stability their budgets, governments at each level have resorted to fiscal gimmicks, such as delaying the wages and income of government employees from the last day of the month to the first day of the given month. In the year of the change, they thus had one fewer period to pay.
Evaluate how such a change would affect the reported expenditures of a governmental fund under GAAP. Provide particular examples to support your response.
Determine the impact of GASB Interpretation No.6, Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements on the accrual and payment of the salaries.
Other needs: " Nonexchange and Property Taxes Transactions" Please respond to the given cases:
Explain how property taxes are treated differently in the governmental funds statements as opposed to the governmental wide statements? Do you agree with this solution? Why or why not?
From the first e-Activity, explain the accounting treatment of no exchange transactions with a focus on the difference between voluntary nonexchange and government-mandated transactions. Determine the potential impact of time restrictions on revenue recognition for nonexchange transactions. Rationalize the dissimilarity in time restrictions for mandatory nonexchange reporting and voluntary nonexchange reporting.