​Superficial Drill Down on Governmental Accounting Sheet Nine

​Superficial Drill Down on Governmental Accounting Sheet Nine: 
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• GASB 1400.109–.111 - held for public exhibition and not gain, it is to be protected and preserved, and a policy is in place requiring proceeds from any potential sale to be used to acquire other collection items. 
• GASB 1600.127.b - “Expenditures for insurance and similar services (prepaid items) extending over more than one accounting period need not be allocated between or among accounting periods, but may be accounted for as expenditures of the period of acquisition.”
• The general fund records expenditures rather than expenses - record salaries and wages must,  to expenditures control as an example. 
• Revenues from state appropriations for other than capital-asset-related purposes are recorded as nonoperating revenues.
• Debt service fund is a reserve used to account for and report payments of the maturing principal and interest of general government short- and long-term debt.
• Encumbrances resulting from the issuance of purchase orders or approval of contracts are not reported as liabilities since neither the goods nor services have been received.
• A liability is recorded on the books only when the goods/services are received. 
• The intent of balanced budget laws is to achieve interperiod equity

cc: Reporting