Superficial Drill Down on Governmental Accounting Sheet Seven

Superficial Drill Down on Governmental Accounting Sheet Seven: 

• The enterprise fund uses the economic resources measurement focus and the accrual basis of accounting. 
• Fund accounting is used by governmental units with financial resources - which are segregated for the purpose of carrying on specific activities or attaining certain objectives.
• A governmental entity should have only one general fund. 
• Recording error should be signaled if balance in the Fund Balance—Reserved for Encumbrances account exceeds the amount of encumbrances. 
• Capital projects uses he same basis of accounting as the special revenue fund. A capital projects fund is a fund used to account for financial resources to be used for the acquisition or construction of major capital facilities or long-lived assets 
• In relation to pension and other postemployment benefits - GASB Statement 84 requires additions to be disaggregated and shown by source. Deductions must be disaggregated and shown by type.
• Permanent fund - principal amount of the fund is restricted in use and only the earnings can be expended.
• Special revenue fund - fund’s principal and earnings are both restricted to use.
• Governmental accounting is only required to have one fund, the general fund. Other funds can be added to meet budgetary and legal requirements.

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