FinancialReportingandAnalysis財(cái)務(wù)報(bào)告與分析-sm_ch13

1、Financial Reporting and Analysissm_ch13Chapter 13Personal Financial Statements and Accounting for Governmentsand Not-For-Profit Organizations TO THE NET1. Mission of the Governmental Accounting Standards Board?The mission of the Governmental Accounting Standards Board isto establish and improve stan

2、dards of state and localgovernmental accounting and financial reporting that will result inuseful information for users of financial reports and guide andeducate the public including issuers, auditors, and users of thosefinancial reports.2. Introduction to Performance Measurement“The assessment of a

3、 government entitys performancerequires more than information about the acquisition and use ofresources. It also needs information about the outputs andoutcomes of the services provided and the relationship betweenthe use of resources and those outputs and outcomes. Employinga variety of measures of

4、 inputs, outputs and outcomes, measuresthat relate efforts to accomplishments, and additional explanatorymaterial will assist users of general purpose external financialreports to assess governmental performance more fully.365QUESTIONS財(cái)務(wù)報(bào)告與分13- 1. Personal financial statements may be prepared for an

5、individual, a husband and wife, or a larger family group.13- 2. The basic personal financial statement is the Statement ofFinancial Condition.13- 3. No.13- 4. No.13- 5. Estimated current value basis.13- 6. Net worth.13- 7. Statement of Changes in Net Worth.13- 8. No.13- 9. No. Generally accepted acc

6、ounting principles as they applyto personal financial statements require the accrual basis.13-10. No. Assets and liabilities are not classified as current andnoncurrent. Assets and liabilities are classified in order of liquidityand maturity.13-11. a. Brokers statementsb. Income tax returnsc. Safe d

7、eposit boxd. Insurance policiese. Real estate tax returnf. Checkbookg. Bank statements13-12. Examples would be methods used in determining currentvalues of major assets, description of intangible assets, andassumptions used to compute the estimated income taxes.13-13. If quoted market prices are not

8、 available, then reasonableestimates should be used.13-14. Note: This is an open-ended question. The responses hereare merely suggestions.1. Dues will not increase2. A monthly magazine will be started3663. Add 100 new members4. Retain a minimum of 90% of the current members13-15. No. Not-for-profit

9、organizations are not allowed to use fundaccounting.13-16. No. The accounting for a profit-oriented business iscentered on the entity concept and the efficiency of the entity. Theaccounting for governments does not include a single entityconcept or efficiency.13-17. a. General fund - All cash receip

10、ts and disbursements notrequired to be accounted for in another fund.b. Proprietary fund - Intention is to maintain the funds assetsthrough cost reimbursement by users or partial cost recovery fromusers and periodic infusion of additional assets.c. Fiduciary fund - The principal of a fiduciary fund

11、must remainintact. Typically, revenues earned may be distributed.13-18. The number of funds that will be utilized will depend uponthe responsibilities of the particular state or local government andthe grouping of these responsibilities.13-19. When the representatives of the citizens approve thebudg

12、et, then the individual expenditures become limits. Anincrease in an approved expenditure will require approval by thesame representatives of the citizens. Thus, the representatives ofthe citizens set up a legal control over expenditures.13-20. Government Finance Officers Association.13-21. No. Indu

13、strial revenue bonds are not backed by the fullfaith and credit of the governmental unit.13-22. Budgeting by objectives and/or measures of productivitycan be incorporated into the financial reporting.13-23. No. The accounting for a profit enterprise is centered onthe entity concept and the efficienc

14、y of the entity. Fundaccounting is centered on a self-balancing set of accounts. Fundaccounting would not be a reasonable method for a profit 367enterprise.368PROBLEMS PROBLEM 13-1a. $ 80,000 Purchase price10,000 Improvements90,0001.40 Increase in inflation rate126,00020,000 Less mortgage$106,000Not

15、e: An appraisal would likely be preferable to this computation.b. $9,000. The average selling price for this model of car.c. Estimated current value of the IRA:IRA $20,000Less Taxes:1. 10% IRS penalty for early withdrawal 2. $20,000 x 30% Estimated current value of the IRA $12,000d. The guarantee sh

16、ould not be presented as a liability. It shouldbe disclosed in a footnote, if material.e. If the offer to buy back the mortgage is still outstanding, theestimated current value of the debt would be $40,000. If thebuy-back offer has expired, then the estimated current value ofthe mortgage is $45,000.

17、369PROBLEM 13-2a. Rees:1,000 shares x $20 = $20,000Less commission 148$19,852Bells:2,000 shares x $8 = $16,000Less commission 170$15,830b. Certificate of deposit $10,000Accrued interest 50010,500Less early withdrawal penalty 300$10,200c. Present selling price per share $ 25Option price per share 20E

18、stimated value of options per share (A) 5Number of options (B) 500Total estimated value of options A x B $2,500d. Cash value $50,000Less loan outstanding 20,000Estimated current value $30,000e. $90,000 estimate of current value4,500 broker fee (5% x $90,000)$85,500Note: It would be better to get an

19、independent appraisal of thehome than to use Larrys estimate.370PROBLEM 13-3a. Marketable securities $5,000 x 28% = $1,400Residence 25,000 x 28% = 7,000$8,400b. Bob and CarlStatement of Financial ConditionDecember 31, 2004AssetsCash $ 20,000Marketable securities 50,000Life insurance 50,000Residence

20、125,000Furnishings 25,000 Jewelry 20,000Autos 12,000$302,000LiabilitiesMortgage payable $ 90,000Note payable 30,000Credit cards 10,000Total liabilities 130,000Estimated income taxes on differences between estimatedcurrent value of assets and their tax basis 8,400*Net worth 163,600 $302,000*($5,000 +

21、 $25,000) x 28% = $8,400c. 1. The net worth is $163,600. Many would consider this arelatively high amount.2. Liquid assets total $70,000 (cash, $20,000; and marketablesecurities, $50,000).3. The majority of the liabilities are long-term (mortgage payable,$90,000).4. Comparison of specific assets wit

22、h related liabilities:Residence:Current value $125,000Mortgage payable 90,000Net investment $ 35,000371PROBLEM 13-4a. Marketable securities: $20,000 x 28% = $ 5,600Options: $30,000 x 28% = 8,400Residence: $50,000 x 28% = 14,000Royalties: $20,000 x 28% = 5,600 $33,600b. Mary Lou and ErnieStatement of

23、 Financial ConditionDecember 31, 2004AssetsCash $ 20,000Marketable securities 100,000Options 30,000Residence 150,000Royalties 20,000Furnishings 20,000Auto 15,000$355,000LiabilitiesMortgage $ 70,000Auto loan 10,000Total liabilities 80,000 Estimated income taxes on differencesbetween estimated current

24、 value of assets and their tax basis33,600* Net worth 241,400 $355,000*($20,000 + $30,000 + $50,000 + $20,000) x 28% = $33,600c. 1. The net worth is $241,400.2. Liquid assets total $120,000 (cash, $20,000; marketablesecurities, $100,000).3. Most of the liabilities appear to be long-term (mortgagepay

25、able, $70,000).4. Comparison of specific assets with related liabilities: AutoResidenceCurrent value $15,000 Current value $150,000 Auto loan 10,000Mortgage 70,000Net investment $ 5,000 Net investment $ 80,000 372PROBLEM 13-5 a. Bob and SueStatement of Changes in Net Worth For the Year EndedDecember

26、 31, 2004 Realized increases in net worthSalary $ 60,000Dividend income 2,500Interest income 2,000Gain on sale of marketable securities 500 65,000Realized decreases in net worthIncome taxes 20,000Interest expense 6,000Personal expenditures 29,00055,000Net realized increases in net worth 10,000Unreal

27、ized increases in net worthStock options 3,000Land 7,000Residence 5,00015,000Unrealized decreases in net worthBoat 3,000Jewelry 1,000Furnishings 4,000Estimated income taxes on the differences between theestimated current values of assets and the estimated currentamountsof liabilities and their tax b

28、ases 15,00023,000Net unrealized decreases in net worth 8,000Net increase in net worth 2,000Net worth at the beginning of year 150,000Net worth at the end of year $152,000373b. 1. Most of the realized increases in net worth came from salary($60,000).2. The major decreases in realized net worth were i

29、ncome taxes($20,000) and personal expenditures ($29,000).3. Net realized increases in net worth, $10,000.4. Land had the most material increase in unrealized net worth($7,000).5. Principle unrealized decreases in net worth was the estimatedincome taxes on the difference between the estimated current

30、values of assets and the estimated amounts of liabilities and theirtax bases ($15,000).6. Net unrealized decreases in net worth ($8,000).7. Net increase in net worth ($2,000).8. Net worth at the end of year ($152,000).374PROBLEM 13-6a. Jim and CarlStatement of Changes in Net WorthFor the Year Ended

31、December 31, 2004Realized increases in net worthSalary $ 50,000Interest income 6,00056,000Realized decreases in net worthIncome taxes 15,000Interest expense 3,000Personal property taxes 1,000Real estate taxes 1,500Personal expenditures 25,00045,500Net realized increases in net worth 10,500Unrealized

32、 increases in net worthMarketable securities 2,000Land 5,000Residence 3,000Stock options 4,00014,000Unrealized decreases in net worthFurnishings 3,000Estimated income taxes on the differences between theestimatedcurrent values of assets andthe estimated current amountsof liabilities and their tax ba

33、ses 12,00015,000Net unrealized decreases in net worth 1,000Net increase in net worth 9,500Net worth at the beginning of year 130,000Net worth at the end of year $139,500b. 1. Net increase in net worth was $9,500, which brought the networth at the end of the year to $139,500.2. The major increase in

34、realized net worth was salary ($50,000).3. The major realized decrease in net worth was personalexpenditures ($25,000).375PROBLEM 13-7a. RevenuesIncome taxes 50.0Property taxes 5.1Special assessments 6.7Licenses and permits .7Intergovernmental services 19.1Charges for services 4.1Investment earnings

35、 2.5Fines and forfeitures 1.3All other revenue .8Total Revenue 90.3ExpendituresCurrent:General government 7.0Public service 9.1Public safety 45.7Public utilities .5Community environment 7.0Health 5.6Parks and recreation 1.7Capital Outlay 14.4Debt ServicePrincipal retirement 4.8Interest and fiscal ch

36、arges 4.0Total Expenditures 100.0b. The most significant revenue item is income taxes,representing 50% of total expenditures.The most significant expenditure is public safety representing45.7% of total expenditures.376PROBLEM 13-8a. City of ToledoIncome Tax RevenuesHorizontal Common-Size AnalysisFis

37、cal Year % Common-Size Analysis1992 100.01993 104.81994 113.21995 117.51996 125.41997 129.21998 130.91999 136.02000 139.32001 136.7b. Income tax revenues increased substantially between 1992 and 1997.There has been a modest increase between 1997 and 2001. Income taxrevenues declined in 2001.PROBLEM

38、13-9a. Assessed value increase1992 $3,196,025,0002001 $4,025,806,000Increase $ 829,781,000b. General bonded debt increase1992 $ 68,995,0002001 $123,810,000Increase $ 54,815,000c. Assessed value increased 25.9%, while general bonded debt increased79.4%. Debt went up much more than the increase in ass

39、essed value.377PROBLEM 13-10a. Combined fund balance increased from $15,761,000 in 1997 to$17,975,000 in 1998, an increase of $2,214,000.b. Institute of Management Accountants, Inc. and AffiliatesCombined Statement of Activities and Changes in Net AssetsHorizontal Common-Size AnalysisYears Ended Jun

40、e 30, 1998 and 1997(Revenues and Support, and Expenses)In Percentage1998 1997 Revenues and support: Membership dues and fees 96.1 100.0Education programs 104.4 100.0 Annual conference 95.4 100.0 Advertisingand sales of 103.9 100.0 publications 79.5 100.0 CMA/CFM examination fees113.8 100.0 Interest

41、income 75.0 100.0 Other 99.0 100.0Total revenues and supportExpenses: Payments to chapters 97.7 100.0 Chapter and member services95.3 100.0 Education programs 103.5 100.0 Marketing 103.4 100.0 Annualconference 108.3 100.0 Publications and information center 110.0 100.0CMA/CFM program 80.8 100.0 Rese

42、arch expenditures 22.8 100.0Administration and occupancy costs 90.3 100.0 Asset valuation charge 0.0100.0 Other 72.7 100.0Total expenses 90.9 100.0378c. Institute of Management Accountants, Inc. and AffiliatesCombined Statement of ActivitiesVertical Common-Size AnalysisYears Ended June 30, 19985 and

43、 19974(Total Revenue and Expenses)In Percentage1998 1997 Revenues and support: Membership dues and fees 40.8 42.1Education programs 8.1 7.7 Annual conference 3.5 3.6 Advertising and sales of12.6 12.0 publications 8.0 7.9 CMA/CFM examination fees 24.6 21.4Investment income 4.1 5.4 Other 100.0 100.0To

44、tal revenues and supportExpenses: Payments to chapters 5.3 5.4 Chapter and member services10.3 10.7 Education programs 10.0 9.6 Marketing 2.7 2.6 Annual conference3.1 2.8 Publications and information center 13.8 12.4 CMA/CFM program 8.210.0 Research expenditures .8 .6 Administration and occupancy co

45、sts 30.333.2 Asset valuation charge - 3.5 Other 4.0 5.4Total expenses 88.4 96.2d. Horizontal1. Very significant decrease in CMA/CFM examination fees.2. Very significant decrease in other revenues.3. Significant increase in investment income.4. Significant increase in publications.5. Very significant

46、 increase in administration and occupancy costs.6. Asset valuation charge eliminated.7. Very significant decrease in other expenses.Vertical1. Asset valuation charge eliminated.2. Significant decrease in total expenses.379CASESCASE 13-1 GOVERNOR LUCAS - THIS IS YOUR COUNTY (This caseprovides the opp

47、ortunity to review selected parts of the Lucas Countystatements.)a.Lucas County, OhioStatement of Net AssetsVertical Common-Size AnalysisDecember 31, 2001Primary GovernmentBusiness-Governmental type ComponentActivities Activities Total Units Assets: Pooled cash and cashequivalents 8.7 2.7 7.9 8.8 Po

48、oled investments 24.4 7.4 22.0 23.4Segregated cash accounts 1.0 - .9 - Receivables, net 21.9 3.8 19.3 6.9 Duefrom other funds .0 - .0 - Due from other governments 1.5 - 1.3 - - Prepaidexpenses - .9 Inventory of materials andsupplies .1 .1 .1 .9 Capital assets, net 42.3 86.1 48.5 59.2 Total assets381

49、100.0 100.0 100.0 100.0Liabilities: Accounts payable 3.0 .3 2.6 6.8 Accrued wages and benefits4.7 .7 4.1 1.5 Due to other funds .0 .0 .0 - Due to other governments .3 .3 -Deposits 1.0 .9 - Matured bonds payable .0 .0 -Matured interest payable .0 .0 -Deferred revenue - - 1.9 Claims payable 1.1 .9 - N

50、otes payable 1.7 1.5 -Long-term liabilitiesDue within one year 2.0 .7 1.8 .5Due in more than one year 17.3 19.5 17.6 28.5 Total liabilities 31.121.2 29.7 39.3Net Assets: Invested in capital assets,Net of related debt 23.0 65.9 29.1Restricted for:Capital projects 3.1 2.7Debt service 1.7 1.4380Other p

51、urposes .0 .0Unrestricted 41.1 12.9 37.1 60.7Total net assets 68.9 78.8 70.3 60.7b. - Capital assets, net is the dominate asset.- Long-term liabilities, due in more than one year is the dominate liability.- Unrestricted, net assets is the dominate item in net assets.c. - General Fund- Children Servi

52、ces Board Special Revenue Fund- Board of Mental Retardation Special Revenue Fund- Public Assistance Special Revenue Fund- Capital Improvements Capital Project Fund- Debt Service Fundd. - Water Supply System Enterprise Fund- Sewer System Enterprise Fund- Wastewater Treatment Enterprise Funde. Basic o

53、f Accounting: Basis of accounting determines whentransactions are recorded in the financial records and reported on thefinancial statements. Government-wide financial statements are preparedusing the accrual basis accounting. Governmental funds use the modifiedaccrual basis of accounting proprietary

54、 and fiduciary funds also use theaccrual basis of accounting.f. (1) Revenues are recorded when received in cash (budget) as opposedto when susceptible to accrual (GAAP).(2) Expenditures are recorded when encumbered, or paid in cash (budget),as opposed to when susceptible to accrual (GAAP).g. Capital assets are defined by the government as assets with an initial,individual cost of more than $5,000 (amount not rounded) and anestimated usefu