When Is Revenue Recognized In Government Funds

Available collected or expected to be collected soon enough to pay the liabilities it was intended to cover 60 day rule.

When is revenue recognized in government funds. The determination as to when revenue is earned is dependent on the language in each specific grant. Recognizing revenue in governmental funds. Payments made to a state pension plan by the state government on behalf of a local government should. The grant revenue that the city should recognize in the government wide financial statements in the current year is.

Learn vocabulary terms and more with flashcards games and other study tools. Revenue recognition is a generally accepted accounting principle gaap that identifies the specific conditions in which revenue is recognized. A not be displayed or disclosed in the local government financial statements. Most of the examples in this and the next chapter will implicitly be directed toward governments general funds.

Chapter 4 recognizing revenue in governmental funds revenue recognition principles same for both modified and full accrual except for modified accrual basis revenue recognized when measurable and available m a to finance expenditures of the fiscal period. If you determine that your government grants are contributions then you should follow the guidance in fasb116.