| Subject |
Prepaid Items |
| Authoritative Literature |
GASB 34 Paragraphs 16, 79, 92, 107 |
| General Description |
- The statement of net assets and the statement of activities should
be prepared using the economic resources measurement focus and the
accrual basis of accounting. Paragraph 16.
- The financial statements for governmental funds should be presented
using the current financial resources measurement focus and the modified
accrual basis of accounting. Paragraph 79.
- Proprietary fund statements of net assets and revenues, expenses,
and changes in fund net assets should be presented using the economic
resources measurement focus and the accrual basis of accounting. Paragraph
92.
- Financial statements of fiduciary funds should be reported using
the economic resources measurement focus and the accrual basis of
accounting, except for the recognition of certain liabilities of defined
benefit pension plans and certain post-employment health care plans.
Paragraph 107.
|
| Current Reporting by STARS |
- STARS has a balance sheet general ledger account number 1030 set
up for prepaid expenses but currently no entries are made to this.
|
Conversion Issues
(Data Needed, Journal Entries Required) |
- Journal entries will be needed to record the material prepaid assets
of the governmental funds.
- Prepaid amounts lifted from other agencies' CAFRs is recorded in
general ledger account number 1019, other current assets.
|
| Footnote Disclosure Required |
None. |
| Methodology of Gathering Data (including name of State agency and detail
description of data) |
On May 30, 2000, Accounts and Reports surveyed state agencies to determine
if Prepaid Assets were material for GAAP reporting. Our survey results
were tabulated and it was determined that Prepaid Assets are not material
and will not be reported in the financial report. |
| Material State Agencies Affected |
None. |
| Policies |
It was determined that prepaid items were not material to the financial
statements. As such, no adjustments will be made to record any prepaid
items other than for amounts lifted from other agencies' CAFRs. Surveys
will need to be performed periodically to determine that prepaid items
continue to be immaterial. |
| Contacts |
Lisa Hockenberry, Division of Accounts and Reports |
