tailieunhanh - Lecture note Government and not-for-profit accounting: Concepts and practices (7/e) – Chapter 9: Business – Type (proprietary) activities

Chapter 9 - Business – Type (proprietary) activities. In this chapter, the learning objectives are: Why governments and NFPs engage in business-type activities, distinguish between proprietary and governmental activities, proprietary fund accounting, two types of proprietary funds,. | Chapter 9 Business – Type (Proprietary) Activities © 2016 John Wiley & Sons, Inc. All rights reserved. 1 © 2016 John Wiley & Sons, Inc. All rights reserved. 2 Chapter 9 | Today’s Funnie Thought to Ponder: Chapter 9 "Nobody wants a landfill site anywhere near them, including in rural areas. Weve come to this realization that landfill is valuable and we cant bury things that dont need to be buried." - JON D. JOHNSTON of the EPA, who is helping to lead the zero-waste movement in the Southeast. NY TIMES-Oct. 20, 2009 © 2016 John Wiley & Sons, Inc. All rights reserved. 3 Learning Objectives Why governments and NFPs engage in business-type activities Distinguish between Proprietary and Governmental activities Proprietary Fund Accounting Two types of Proprietary Funds Enterprise Funds Internal Service Funds Accounting for Insurance Activities GASB 34, special problems of reporting proprietary funds in government-wide statements © 2016 John Wiley & Sons, Inc. All rights reserved. . | Chapter 9 Business – Type (Proprietary) Activities © 2016 John Wiley & Sons, Inc. All rights reserved. 1 © 2016 John Wiley & Sons, Inc. All rights reserved. 2 Chapter 9 | Today’s Funnie Thought to Ponder: Chapter 9 "Nobody wants a landfill site anywhere near them, including in rural areas. Weve come to this realization that landfill is valuable and we cant bury things that dont need to be buried." - JON D. JOHNSTON of the EPA, who is helping to lead the zero-waste movement in the Southeast. NY TIMES-Oct. 20, 2009 © 2016 John Wiley & Sons, Inc. All rights reserved. 3 Learning Objectives Why governments and NFPs engage in business-type activities Distinguish between Proprietary and Governmental activities Proprietary Fund Accounting Two types of Proprietary Funds Enterprise Funds Internal Service Funds Accounting for Insurance Activities GASB 34, special problems of reporting proprietary funds in government-wide statements © 2016 John Wiley & Sons, Inc. All rights reserved. Chapter 9 | 4 Proprietary Funds Reasons for use: to account for governmental entity’s ongoing (continuing) operations and activities Enhances management of activities in which goods or services are provided on a cost-reimbursement basis (. on a user charge basis.) To compare benefits and costs of the business-type activities of a government. Facilitates comparisons with private enterprises © 2016 John Wiley & Sons, Inc. All rights reserved. 5 Proprietary Funds Two types of Proprietary Funds A) Enterprise funds: Provide services to the general public. Example: City of Houston’s Airports (Bush, Hobby and Ellington Field), George R. Brown Convention Center, Combined Utility System (formerly called the water and sewer system), etc. B) Internal service funds: Provide services to other government departments. Example: City of Houston Health Benefit and Long-term Disability funds. Both of these services predominantly benefit governmental units rather than the general public or businesses © 2016

• Kế toán - Kiểm toán
• Accounting for governmental
• Not for profit organizations
• Financial reporting for governmental
• Not for profit accounting