|Posted: 16 Mar 2009 at 14:37 | IP Logged
The reconciliation is from the governmental fund perspective to the government-wide financial statements.
On page F9-21 in Beckers, if we read through the steps for reconciliation, we would note that we take the fund balance of GRASPP funds and then start reconciling....
It's true that internal service funds follow full accrual accounting, however, remember that these have to be included in governmental activities column.
Internal service funds are reported separately on fund financial statements... they were not a part of the aggregated governmental funds. Now, we are simply including them in the aggregated governmentak funds for the presentation of government wide financial statements....
In the other way, we are basically following two kinds of reconciliations here:
1.) Converting modified accrual to full accrual for GRASPP funds
2.) Including full accrual Internal service funds in governmental funds.
On government-wide financial statements,
governmental funds = GRASPP + Internal service
Edited by divyagovil1 on 16 Mar 2009 at 14:46
Divya - CO State
Passed using Becker Review :
FAR - 04/11/09 - 94
BEC - 05/30/09 - 86
REG - 08/29/09 - 95
AUD - 11/21/09 - 92
Ethics - 2011