Section 3: 10–20%B12
Government-Wide Statements and Reconciliations
Exam Insight
Governments present both fund statements (mostly modified accrual) and government-wide statements (full accrual). The reconciliation between them — adding capital assets, subtracting long-term debt — is one of the most heavily tested topics in BAR's state and local government section.
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What AICPA Wants You to Know
- 1Identify the two government-wide statements and the activities they include
- 2Distinguish governmental, business-type, and fiduciary activities in the reporting model
- 3Reconcile total governmental fund balance to government-wide net position
- 4Reconcile the change in fund balance to the change in net position
- 5Apply the 10%/5% major fund test and describe the components of the annual financial report