Essentials of Accounting for Governmental and Not-for-Profit Organizations Apago PDF Enhancer Tenth Edition
Paul A. Copley, Ph. D., CPA
KPMG Professor Director, School of Accounting James Madison University
ESSENTIALS OF ACCOUNTING FOR GOVERNMENTAL AND NOT-FOR-PROFIT ORGANIZATIONS, TENTH EDITION Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2008, 2007 and 2004. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOC/DOC 1 0 9 8 7 6 5 4 3 2 1 0 ISBN 978-0-07-352705-5 MHID 0-07-352705-X Vice President and Editor-in-Chief: Martin Lange VP SEM, EDP, Central Publishing Services: Kimberly Meriwether David Editorial Director: Stewart Mattson Publisher: Tim Vertovec Sponsoring Editor: Donna Dillon Marketing Manager: Dean Karampelas Development Editor: Emily Hatteberg Project Manager: Melissa M. Leick Design Coordinator: Brenda Rolwes Cover Designer: Studio Montage, St. Louis, Missouri USE Cover Image Credit: Eyewire (Photodisc)/PunchStock Senior Production Supervisor: Laura Fuller Media Project Manager: Suresh Babu / Balaji Sundararaman, Hurix Systems Pvt. Ltd. Compositor: MPS Limited, A Macmillan Company Typeface: 10.5/12pt Times Roman Printer: R. R. Donnelley
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All credits appearing on page or at the end of the book are considered to be an extension of the copyright page. Library of Congress Cataloging-in-Publication Data Copley, Paul A. Essentials of accounting for governmental and not-for-profit organizations / Paul A. Copley. — 10th ed. p. cm. Includes index. ISBN 978-0-07-352705-5 1. Administrative agencies—United States—Accounting. 2. Nonprofit organizations—United States— Accounting. I. Title. HJ9801.H39 2011 657'.83500973—dc22 2009054187 www.mhhe.com
Thank you for considering the tenth edition of Essentials of Accounting for Governmental and Not-for-Profit Organizations. The tenth edition is updated for recent changes including: • GASB Statement 54: Fund Balance Reporting and Governmental Fund Type Definitions. • FASB Statement 164, Not-for Profit Entities: Mergers and Acquisitions. • IRS Form 990 Return of Organization Exempt From Income Tax. In addition, the text includes a new chapter on Federal Government reporting. I have used the text with stand-alone, three semester-hour classes, with half-semester GNP courses, and as a module in advanced accounting classes. It is appropriate for accounting majors or as part of a public administration program. The coverage is effective in preparing candidates for the CPA examination. The focus of the text is on the preparation of external financial statements. Among the more challenging aspects of state and local government reporting is the preparation of government-wide financial statements. Our approach is similar to that used in practice. Specifically, day-to-day events are recorded at the fund level using the basis of accounting for fund financial statements. Governmental activities are recorded using the modified accrual basis. The fund-basis statements are then used as input in the preparation of government-wide statements. The preparation of government-wide statements is presented in an Excel worksheet. This approach has two advantages: (1) it is the approach most commonly applied in practice, and (2) it is an approach familiar to students who have studied the process of...