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Sunday, May 10, 2020 | History

2 edition of An examination of the depreciation controversy in municipal accounting found in the catalog.

An examination of the depreciation controversy in municipal accounting

by Florence C. Sharp

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  • 3 Currently reading

Published by College of Commerce and Business Administration, University of Illinois at Urbana-Champaign in [Urbana, Ill.] .
Written in English


Edition Notes

Includes bibliographical references (p. 15-16).

StatementFlorence C. Sharp
SeriesBEBR faculty working paper -- no. 1085, BEBR faculty working paper -- no. 1085.
ContributionsUniversity of Illinois at Urbana-Champaign. College of Commerce and Business Administration
The Physical Object
Pagination16 p. ;
Number of Pages16
ID Numbers
Open LibraryOL25105883M
OCLC/WorldCa742060033

MMAAA canceling Annual Meeting scheduled for June , Date: April 3, Given the evolving and intensifying developments and the Governor’s State of Emergency regarding the Corona virus the MMAAA Executive Board has voted unanimously to cancel the MA Municipal Auditors and Accountants Annual Meeting scheduled for June th.. We want to thank you for your patience as . What is the difference between book depreciation and tax depreciation? How do I compute the units of production method of depreciation? What is materiality? What is the accounting treatment for an asset that is fully depreciated, but continues to be used in a business? What is capitalized interest? What is the difference between assets and.

An audit is an independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form. When such an examination is conducted with a view to express an opinion thereon" [citation needed] It also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. The purpose of accrual accounting is to match revenues and expenses to the time periods during which they were incurred, as opposed to the timing of the actual cash flows related to them. Categories in Accrual Accounting. In accounting, accruals in a broad perspective fall under either revenues (receivables) or expenses (payables).

• Depreciation has a significant ef fect in deter mining and presenting the financial position and results of operations of an enterprise. Depreciation is charged in each accounting period by reference to the extent of the depreciable amount. • The subject matter of depreciation File Size: KB. Tax depreciation exceeded book depreciation by $, In addition, the company received $, of tax-exempt municipal bond interest. The company's prior-year tax .


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An examination of the depreciation controversy in municipal accounting by Florence C. Sharp Download PDF EPUB FB2

Generallyacceptedaccountingprinciples(GAAP)aresetforthin GovernmentalAccounting, Auditing,and FinancialReporting (GAAFR),the publication of the MunicipalFinanceOfficersAssociation (MFOA).

An examination of the depreciation controversy in municipal accounting By Florence C. Sharp Download PDF (1 MB)Author: Florence C. Sharp. Book depreciation is the amount of depreciation expense calculated for fixed assets that is recorded in an entity's financial statements.

It can vary from tax depreciation, which is the amount calculated for inclusion in an organization's tax return. Book depreciation tends to be lower than tax depreciation. a brief history of property and depreciation accountlng in municipal accounting Abstract: Generally accepted accounting principles require the exclusion of perma-nent property and the non-recognition of depreciation in most governmental funds.

The accounting for depreciation requires an ongoing series of entries to charge a fixed asset to expense, and eventually to derecognize it. These entries are designed to reflect the ongoing usage of fixed assets over time.

Depreciation is the gradual charging to expense of an asset's cost over its expected useful reason for using depreciation to gradually reduce the recorded cost of a. Every accounting period, depreciation of asset charged during the year is credited to the Accumulated Depreciation account until the asset is disposed.

Accumulated depreciation is subtracted from the asset's cost to arrive at the net book value that appears on the face of the balance sheet. Using the last example, following double entries will.

An item that would create a permanent difference in accounting and taxable incomes for Gulfport would be 1. a fine resulting from violations of OSHA regulations. using accelerated depreciation for tax purposes and straight-line depreciation for book purposes. a balance in the Unearned Rent account at year-end.

In year 1, Casa Corp. has depreciation expense for income statement purposes of $20, The depreciation deduction on the tax return was $30, The enacted tax rate is 40%. If this is the only difference between pretax income and taxable income, Casa would record a.

Hawkins Inc. had pre-tax accounting income of $1, and a tax rate of 35% inits first year of operations. During the company had the following transactions: Received rent from Barrett Co.

for $64, Municipal bond income: $80, Depreciation for tax purposes in excess of book depreciation: $40, • Taxes are based on the difference between the book value and the sales price • Book value represents the purchase price minus the accumulated depreciation • There will be a tax savings if the book value exceeds the sales price.

The excess of tax depreciation over book depreciation is a taxable temporary difference of $40, The result is a net taxable temporary difference of $35, which results in a net deferred tax expense of $11, ($35, 34%).

The difference between book and tax depreciation leads some people to say, "Oh, the company has two sets of books." The fact is the company must 1) maintain depreciation records for the financial statement depreciation that is based on the matching principle, and also 2) maintain depreciation records for the tax return depreciation that is.

This book explains the following topics: Fundamentals of Managerial Accounting, Managerial Accounting, Managerial Accounting Fundamentals, Financial Statements, Recording Financial Transactions, Accounting Standards, GAAP, IFRS, Depreciation and Inventory, Cash Flow, Interpretation and Analysis of Accounts, Introduction to Cost Accounting, Cost Accumulation, Product and Process Costing.

Depreciation: The method used to systematically move the cost of an asset from the balance sheet to the income statement over the course of the asset’s useful life. Financial accounting uses three methods of depreciation based on time: the straight-line, declining balance, and sum-of-the-years’-digits methods.

A fourth method, units-of. accounting and financial reporting. A ll those involved in the over-sight or management of gov-ernment operations, and those whose livelihoods and interests rely on the finances of state and local govern-ments, need to have a clear understand-ing of governmental accounting, audit-ing, and financial reporting, which areFile Size: KB.

Depreciation is the difference between the cost of buying and any proceeds on disposal Cost of vehicle €80, Proceeds from sale €5, Depreciation is €75, Depreciation is the part of the cost of the fixed asset consumed during its period of use.

Depreciation is an expense and is charged to the profit and loss account 11File Size: 90KB. Get fully prepared for your upcoming test with JobTestPrep's comprehensive online practice materials.

Access five Accounting & Bookkeeping practice tests, including the Free Exam with complete score reports and detailed answer explanations. Don't go into your exam unprepared; practice today and improve your chances of getting the job. book depreciation: The difference between the amount of book value for an asset and how much depreciation is assessed on the asset.

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both tax and accounting purposes.

For tax purposes. Tweet Basically, there are two (2) ways of recording depreciation: 1 Depreciation Charge is recorded in Depreciation Account And Fixed Asset Account is credited with the depreciation amount. Accounting entries as follows: Step 1: Debit: Depreciation Account Credit: Fixed Asset Account Being initial taking up the depreciation into a Depreciation account.

Property accounting: A typical business owns many different substantial long-term assets called property, plant, and equipment — including office furniture and equipment, retail display cabinets, computers, machinery and tools, vehicles (autos and trucks), buildings, and land.

Except for relatively small-cost items, a business maintains detailed records of its property, both for controlling.Now let us look at the two different methods and how we calculate accumulated depreciation in each. Fixed cost method. Fixed cost method, also known as cost price (or straight-line) method is when a fixed amount or percentage of the cost price of the tangible asset is written off each year over the expected life of the asset.

For example, if a vehicle is purchased for R with an expected.Governmental Accounting, Auditing, and Financial Reporting Examination Updated 12/ Sample Examination 1. Ultimate responsibility for internal control rests with: a) Management.

b) The governing board. c) The external auditor. d) The audit committee. 2. Which of the following types of fraud is least likely in an environment where cashFile Size: KB.