From Chapter 8 complete Exercise 8-4 and Exercise 8-5, and from Chapter 9 complete Exercise 9-2 and post the answers to the discussion board. Do not forget to show all necessary steps and explain how you attained the outcome.
8-4 Answer the following questions with regard to infrastructure:
- A) What is infrastructure?
- B) What are two methods that might be used to record infrastructure expense from year to year? How is the accounting different under the two methods?
- C) What conditions must exist in order to use the modified approach to record and report infrastructure?
- D) What are the disclosed requirements if the modified approach is used?
8-5 Under the reporting model required by GASB Statement 34, fund statements are required
for governmental, proprietary, and fiduciary funds. Government-wide statements include the
Statement of Net Position and Statement of Activities. Answer the following questions related to
the reporting model:
- What is the measurement focus and basis of accounting for: (a) governmental fund
statements, (b) Proprietary fund statements, (c) fiduciary fund statements, and (d)
- Indicate differences between fund financial statements and government-wide statements
with regard to: (a) component units, (b) fiduciary funds, and (c) location of internal
- Indicate what should be included in the Statement of Net Position categories: (a) Net Investment in Capital Assets; (b) Restricted, and (c) Unrestricted.
9–2 GASB provides guidance for reporting by special-purpose entities. That guidance depends upon whether special-purpose entities are engaged in activities that are governmental-type, business-type only, or fiduciary-type only. Discuss the guidance and list required basic financial statements for:
- Governments engaged in governmental-type activities. Include those that are engaged in governmental- and business-type activities, more than one governmental activity, and only one governmental activity.
- Governments engaged in business-type activities only.
- Governments engaged in fiduciary-type activities only.