Classes of Nonexchange Transactions
Accounting and Financial Reporting Requirements
Modified accrual basis
Income and Sales Taxes, and Other Derived Tax Revenues
Adjustments for the Accrual Basis of Accounting
Grants and Other Financial Assistance
What financial assistance should be recorded?
Revenue recognition of grants and other financial assistance
Expenditure-driven grants and other financial assistance revenue
The term nonexchange transaction has only recently gained wide use in government accounting and financial reporting, so governmental financial statement preparers may at first think that this chapter will not have broad applicability.
However, once it is understood that taxes are nonexchange transactions, it becomes clear that nonexchange transactions include accounting and financial reporting requirements for a significant part of a governmental entity’s typical transactions.
GASB Statement 33, Accounting and Financial Reporting for Nonexchange Transactions (GASBS 33), divides all transactions into two categories.
As will be more fully described below, nonexchange transactions therefore include very ...