Identifying the Appropriate GAAP. Section A lists a number of reporting requirem

Question

Identifying the Appropriate GAAP. Section A lists a number of reporting requirements for colleges and universities. Section B lists the standard-setting body(ies) imposing the reporting requirements. Section A

_____ 1. Patents are classified as capital assets.

_____ 2. Sidewalks are classified as land improvements.

_____ 3. Revenues and expenses must be categorized as operating and nonoperating.

_____ 4. Tuition and fees must be shown net of any estimated uncollectible amounts.

_____ 5. Expenses must be reported by program and support (management and general, and fund-raising) function classifications.

_____ 6. Statement of cash flows must be prepared using the direct method.

_____ 7. The purchase of a building is reported as an investing activity on the statement of cash flows.

_____ 8. The receipt of student deposits for housing is reported as a liability, Deposits Held in Custody for Others.

_____ 9. The cash from a debt issuance is reported in the capital and related financing activities section on the statement of cash flows. _____10. The collection of historical first editions can be reported as a note rather than on the face of the financial statement provided certain conditions are met.

Section B FASB standards GASB standards FASB and GASB standards Required Using the choices provided in Section B, identify whether the reporting requirement listed in Section A is a FASB standard, a GASB standard, or both a FASB and a GASB standard.

Explanation / Answer

GASB

1. Patents are classified as capital assets.

FASB

2. Sidewalks are classified as land improvements.

GASB

3. Revenues and expenses must be categorized as operating and nonoperating.

Both: FASB and GASB

4. Tuition and fees must be shown net of any estimated uncollectible amounts.

FASB

5. Expenses must be reported by program and support (management and general, and fund-raising) function classifications.

GASB

6. Statement of cash flows must be prepared using the direct method.

FASB

7. The purchase of a building is reported as an investing activity on the statement of cash flows.

Both: FASB and GASB

8. The receipt of student deposits for housing is reported as a liability, Deposits Held in Custody for Others.

GASB

9. The cash from a debt issuance is reported in the capital and related financing activities section on the statement of cash flows.

Both: FASB and GASB

10. The collection of historical first editions can be reported as a note rather than on the face of the financial statement provided certain conditions are met.

GASB

1. Patents are classified as capital assets.

FASB

2. Sidewalks are classified as land improvements.

GASB

3. Revenues and expenses must be categorized as operating and nonoperating.

Both: FASB and GASB

4. Tuition and fees must be shown net of any estimated uncollectible amounts.

FASB

5. Expenses must be reported by program and support (management and general, and fund-raising) function classifications.

GASB

6. Statement of cash flows must be prepared using the direct method.

FASB

7. The purchase of a building is reported as an investing activity on the statement of cash flows.

Both: FASB and GASB

8. The receipt of student deposits for housing is reported as a liability, Deposits Held in Custody for Others.

GASB

9. The cash from a debt issuance is reported in the capital and related financing activities section on the statement of cash flows.

Both: FASB and GASB

10. The collection of historical first editions can be reported as a note rather than on the face of the financial statement provided certain conditions are met.

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