Accountants' Handbook, Volume Two, Special Industries and Special Topics, 12th Edition

Chapter 33

State and Local Government Accounting

We would like to acknowledge our colleagues, Kevin J. O'Connell and Ernest J. Gini, for their contributions to the previous edition and thank them for their undertaking. We also are indebted to Lynford Graham whose thoughtful feedback helped raise our own understanding of governmental accounting.

Cynthia Pon, CPA

Macias Gini O'Connell LLP

Richard A. Green, CPA

Macias Gini O'Connell LLP

Caroline H. Walsh, CPA

Macias Gini O'Connell LLP

33.1 Introduction

33.2 Nature and Organization of State and Local Government Activities

(a) Structure of Government

(b) Objectives of Government

(c) Organization of Government

(d) Special Characteristics of Government

33.3 Source of Accounting Principles for State and Local Government Accounting

(a) National Council on Governmental Accounting

(b) Governmental Accounting Standards Board

33.4 Governmental Accounting Principles and Practices

(a) Similarities to Private Sector Accounting

(b) Users and Uses of Financial Reports

(c) Summary Statement of Principles

(i) Accounting and Reporting Capabilities

(ii) Government-Wide and Fund Accounting Systems

(iii) Types of Funds

(iv) Accounting for Capital Assets

(v) Valuation of Capital Assets

(vi) Depreciation and Impairment of Capital Assets

(vii) Accounting for Long-Term Liabilities

(viii) Measurement Focus and Basis of Accounting

(ix) Budgeting, Budgetary Control, and Budgetary Reporting

(x) Transfer, Revenue, Expenditure, and Expense Account Classification ...