Is an interfund transfer revenue?
Is an interfund transfer revenue?
Inflows of current financial resources from other funds are to be distinguished from a government’s regular revenues. So interfund transfers received from other funds are reported as an Other Financing Sources rather than revenue, and interfund transfer sent to other funds are recorded as Other Financing Uses.
How are interfund transfers shown on the government wide statement of activities?
Interfund transfers are shown as general revenues on the government-wide statement of activities. Budgetary accounts used in the General Fund include Estimated Revenues, Estimated Other Financing Sources, Appropriations, Estimated Other Financing Uses, and Encumbrances.
What is an interfund transfer in governmental accounting?
Interfund transfers — Flows of assets (such as cash, goods or services) without a repayment requirement and without equivalent flows of assets in return. Interfund transfers include “payments in lieu of taxes” that are not payments for, but are reasonably equivalent in value to, services provided.
What are interfund transactions?
Interfund transactions are transactions between individual funds. Reciprocal interfund transactions are the internal counterpart to exchange and exchange-like transactions and include interfund loans and interfund services provided and used.
What is interfund revenue?
Interfund Billings. Definition: Interfund services provided and used are sales and purchases of goods and services between funds for a price approximating their external exchange value. The fund that performed the services or provided the goods should record the receipt of revenue.
What is interfund accounting?
Interfund transfers are flows of assets between funds without equivalent flows of assets in return and without a requirement for repayment. Interfund transfers are not used to account for interfund loans or borrowing. The two major categories of interfund transfers are: 1. Residual equity transfers.
How are special items reported in government financial statements?
Special Items in the Statement of Activities At the bottom of the statement, after ‘Other Financing Sources or Uses’, special and extraordinary items are presented.
What are interfund balances?
In its simplest form, an interfund balance occurs when an Association utilizes one fund to pay for another fund’s activity. In a perfect world, activity for each fund would never cross paths with that of another fund.
What are the possible types of interfund transactions?
XVI. 4. R Interfund Transactions and Transfers
- Residual Equity Transfers.
- Operating Transfers From/To Other Funds.
How do interfund loans operate?
Definition: One fund loans money to another fund with a requirement for repayment. It creates an interfund receivables (due from) in the lending fund and interfund payables (due to) in the borrowing fund. Interfund loans are reported only on the balance sheet, GAAP basis and the operating statement for budget basis.
What is the general rule for recognizing revenues in governmental funds?
Revenues are recognized when they are both measurable and available. Expenditures, however, are recorded on a full accrual basis because they are always measurable when they are incurred. The measurement focus of governmental funds affects which transactions are recognized in the operating fund.
On what do the government wide financial statements report?
On what do the government-wide financial statements report? Operational accountability. Fiscal accountability. The governmental fund financial statements are intended to report on fiscal accountability.
Where are Interfund Transfers reported on a balance sheet?
These transfers should be reported in the “Other Financing Sources (Uses)” section in the Statement of Revenues, Expenditures and Changes in Fund Balance for the Governmental Funds. It should be noted that interfund transfers do not include loans or advances.
How are Interfund services provided and used reported?
Interfund services provided and used — Report sales and purchases of goods and services between funds for a price approximating their external exchange value as revenues in seller funds and expenditures or expenses in purchaser funds. Treat the activity as though the transaction had involved a party outside the state.
Do you have to report interfund receivables in financial statements?
Report interfund loans as interfund receivables in lender funds and interfund payables in borrower funds. Do not report interfund loans as other financing sources or uses in the governmental fund financial statements because interfund loans are intra-agency activities.
What are the four types of interfund activities?
There are four categories of interfund activities classified into two groups – Interfund Transactions and Interfund Transfers. Transactions and transfers constitute revenues, expenditures or expenses of the funds involved. In a strict fund accounting sense, however, they do not constitute such to the governmental unit as a whole.
