Government and nonprofit accounting Essay Example | Topics and Well Written Essays - 500 words

Government and nonprofit accounting - Essay ExampleThe criteria should be employ to determine the extent to which a transferor government either retains or relinquishes control over the receivables or prox revenues through its continuing involvement with those receivables or future revenues. This Statement establishes that a proceeding will be reported as a collateralized borrowing unless the criteria indicating that a sale has taken place ar met. If it is stubborn that a transaction involving receivables should be reported as a sale, the difference between the carrying value of the receivables and the harvest should be recognized in the period of the sale in the change statements. If it is determined that a transaction involving future revenues should be reported as a sale, the revenue should be deferred and amortized, except when specific criteria are met. This Statement also provides additional guidance for sales of receivables and future revenues within the same financial account entity (Government Accounting Standards Board, 2006).This Statement includes a provision that stipulates that governments should not revalue assets that are transferred between financial report entity components.