Section 3: 10–20%B13

Government-Specific Transactions and Reporting

Exam insight

Beyond the funds and the conversion, BAR tests a cluster of government-only transactions: nonexchange revenue under GASB 33, infrastructure and the modified approach, interfund activity, net position classifications, and pension/OPEB reporting. These rules have no private-sector equivalent, so they must be learned directly.

What AICPA wants you to know

1Apply GASB 33 to derived, imposed, government-mandated, and voluntary nonexchange transactions
2Recognize property tax revenue using the availability and 60-day rules
3Account for capital assets and infrastructure, including the modified approach
4Classify and eliminate interfund activity (transfers, loans, and services)
5Report the three components of net position and the basics of pension/OPEB liabilities

Patterns in this topic

The exam re-skins the same archetypes. Recognize these here, then drill them in the Pattern Lab.

The Modified Accrual ReadGovernmental funds measure current financial resources: recognize revenue when measurable and available, and expenditures when incurred.The Government-Wide BridgeFull accrual restores what the funds omit: add net capital assets, subtract long-term debt, and exclude fiduciary activities entirely.The Fund StructurePlace the transaction in the right fund, classify fund balance by how binding the constraint is, and test a major fund on 10 and 5 percent.

Exam tip

Study smarter: before you expand each card, cover the screen and try to recall what the concept means from its title alone. Retrieving it from memory builds the recall the exam actually tests, and it beats re-reading.