8621 BASIC RULES
(Revised 9/90)
The following table shows the basic accounting rules for each of the three fund categories. See SAM Sections 8670–8672 for standard property accounting Journal entries.
Report as part of the owner fund's assets.
| |
Fund Catagory |
| Accounting Event |
Governmental |
Proprietary |
Fiduciary |
| |
| A. Accountability |
Record the Property in General Fixed Assets Account Group (see Section 8622 below). |
Record the property in the owner fund's fixed asset accounts |
Record the property in the owner fund's fixed asset accounts |
| B. Acquisition (same rules apply to all fund categories) |
| |
| 1. Purchase |
Record at historical cost |
| |
| 2. Lease Purchase |
Record at less of fair value or discounted present value of lease payments |
| |
| 3. Transfer |
Record at historical cost |
| |
| 4. Gift |
Record at fair market value at date of gift |
| |
| 5. Trade-ins |
See D.2 below |
| |
| C. Use |
No entry. |
Record depreciation/
amortization |
Special rules apply. (Call Department of Finance- Fiscal Systems and Consulting Unit) |
| |
| D. Disposition |
| |
| 1. Sale or other disposition |
Credit sale proceeds to the owner fund. Remove asset from the General Fixed Assets Account Group. |
Record depreciation/ amortization to date of disposition. Credit sale proceeds to the fund. Remove asset from accounting records. |
Credit sale proceeds to the fund. Remove asset from accounting records. |
| |
| 2. Trade-ins |
Remove asset traded in from the General Fixed Assets Account Group. Record asset acquired at the cash consideration parted with (i.e., the cash price which the department would have had to pay had the new asset been purchased for cash). |
Record depreciation/ amortization to date of disposition. Remove asset traded in from accounting records. Record asset acquired at the sum of the undepreciated basis of the old asset plus any other consideration parted with (boot). |
Remove asset traded in from accounting records. Record asset acquired at the cash consideration parted with (i.e., the cash price which the department would have had to pay had the new asset been purchased for cash). |
| |
| E. Financial Statement Reporting |
Report in the General Fixed Assets Account Group (see SAM Section 7977). |
Report as part of the owner fund's assets. |
Report as part of the owner fund's assets. |
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