Active TopicsActive Topics  Display List of Forum MembersMemberlist  Search The ForumSearch  HelpHelp
  RegisterRegister  LoginLogin
FAR STUDY GROUP
 CPAnet Forum : FAR STUDY GROUP
Subject Topic: Governmental a/c (Topic Closed Topic Closed) Post ReplyPost New Topic
  
Author
Message << Prev Topic | Next Topic >>
ms500
Major Contributor
Major Contributor


Joined: 30 Jun 2008
Online Status: Offline
Posts: 482
Posted: 29 Jul 2010 at 13:53 | IP Logged  

Valley town's public school system is administered by a seperatly elected board of education. The board of education is not organised as a seperate legal entity and does not have the power to levy taxes or issue bonds. Valley's city council approves the school system's budget. How should Valley report the public school system's annual financial result's

           Discrete        &nbs p;    Blended
           Presentation
a           ;     yes         &nb sp;    yes
b           ;     yes         &nb sp;   no
c           ;     no         &nbs p;    yes
d           ;     no                no

Ans is- C       no-yes

As per my understanding, answer should be -b
for blended presentation, following requirements should meet

Seperately elected governing body
Legally seperate
Fiscal independancy

since, blended presentation is not meeting all above criteria, it is should be a discrete presentation

Appreciate, if some one clarify above

thanks


__________________
BEC - Passed
REG - Passed
Audit- Passed
FARE - Passed Feb 2011 Finally Done
Ethics - 95
Back to Top View ms500's Profile Search for other posts by ms500
 
caixinran
Regular
Regular


Joined: 10 Jun 2009
Online Status: Offline
Posts: 159
Posted: 29 Jul 2010 at 15:26 | IP Logged  

Fiscal independence is the most important criteria.

The school board has no power to levy taxes or issue bonds.
And the budget need to be approved by the city, then the
school system/board has no fiscal independence.

Thus, blended reporting is required. and Discrete reporting
is not permitted.

Good luck to all of us!

__________________
REG - July 21, 2009 - 94
BEC - Nov. 03, 2009 - 90
FAR - Aug. 07, 2010 - 96
AUD - Nov, 23, 2010 - 87
Back to Top View caixinran's Profile Search for other posts by caixinran
 
nipson
Contributor
Contributor


Joined: 01 Jun 2010
Online Status: Offline
Posts: 63
Posted: 30 Jul 2010 at 00:21 | IP Logged  

This is why I dislike the exam makers, they often try too hard to confuse us and end up contradicting themselves.

Here is a similar problem, different answer:

Excel City School District has a separate elected governing body that administers the public school system. The district's budget must be approved by the city council of Excel City. The school district's financial activity should be reported in the City's financial statements by:
A.  Discrete presentation.




B.  Blending.



C.  Footnote.



D.  Not at all.





Back to Top View nipson's Profile Search for other posts by nipson
 
divyagovil1
Major Contributor
Major Contributor
Avatar

Joined: 30 Jan 2009
Location: India
Online Status: Offline
Posts: 1456
Posted: 30 Jul 2010 at 06:56 | IP Logged  

All, please refer following two posts as well:

http://www.cpanet.com/cpa_forum/forum_posts.asp?TID=22425&am p;KW=Valley+town%27s+

http://www.cpanet.com/cpa_forum/forum_posts.asp?TID=20335&am p;KW=Valley+town%27s+

I remember this topic confusing me as well. Hope above two posts make things more clearer. Thanks !



__________________
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
Back to Top View divyagovil1's Profile Search for other posts by divyagovil1 Visit divyagovil1's Homepage
 
dev03
Newbie
Newbie
Avatar

Joined: 27 Apr 2010
Online Status: Offline
Posts: 39
Posted: 30 Jul 2010 at 10:38 | IP Logged  

what about interfund transfers...........they are reported as expenditure or transfer out in other financing sources............
Back to Top View dev03's Profile Search for other posts by dev03
 




Page of 2 Next >>
  Post ReplyPost New Topic
Printable version Printable version

Forum Jump
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum

Powered by Web Wiz Forums version 7.9
Copyright ©2001-2010 Web Wiz Guide

This page was generated in 0.1094 seconds.

Copyright © 1996-2016 CPAnet/MizWeb Communities All Rights Reserved
Twitter
|Facebook |CPA Exam Club | About | Contact | Newsletter | Advertise & Promote