Question

format of proprietor fund statement

Answer 1

Financial statements used to present proprietary funds:

Statement of net positionStatement of revenues, expenses and changes in net positionStatement of cash flows

Present fund financial statements for proprietary funds using the economic resources measurement focus and the full accrual basis of accounting. For hard-copy AFRs, agencies present individual proprietary funds in separate columns, whereas universities must aggregate funds into a single column. Display a combined total column for all enterprise funds.

GASB 34 requires the following format presentation on the fund financial statements for proprietary funds:

Capital contributions, additions to permanent and term endowments, special and extraordinary items and transfers are reported above the increase (decrease) in net position.Present special and extraordinary items separately at the bottom of the statement. For more information, see Governmental Funds.

Present the statement of cash flows for proprietary funds using the direct method of cash flows from operating activities. The statement must include a reconciliation of operating cash flows to operating income. For more information on the statement of cash flows, see Statement of Cash Flows and Instructions for the ACFR Web Application.

The proprietary fund category includes enterprise and internal service funds. Proprietary fund reporting focuses on:

Determination of operating incomeChanges in net position (or cost recovery)Financial positionCash flows

Accrual accounting attempts to record a transaction’s financial effects in the period that the transaction occurred — rather than when the cash was received or paid by the agency. Revenues are recorded when earned or when the agency has a right to receive the revenues. Expenses are recognized when incurred. The date related cash was received or paid is of no consequence.

Answer 2

Explanation:

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