New definition for property tax revenue.The Governmental Accounting Standards Board The Governmental Accounting Standards Board (GASB) is currently the source of generally accepted accounting principles (GAAP) used by State and Local governments in the United States of America. issued a proposal that would make more consistent the accounting methods for nonexchange revenues, such as those from property taxes. The exposure draft, Property Tax Revenue Recognition in Governmental Funds, would be effective for periods beginning after June June: see month. 15, 2000. Revenues and expenditures of government funds are recognized using the modified accrual basis A method of accounting that reflects expenses incurred and income earned for Income Tax purposes for any one year. Taxpayers who use the accrual method must include in their taxable income any money that they have the right to receive as payment for services, once it of accounting. The proposal would amend National Council on Governmental Accounting Governmental accounting is an umbrella term which refers to the various accounting systems used by various public sector entities. In the United States, for instance, there are three levels of government which follow different accounting standards set forth by independent, private Interpretation no. 3, Revenue Recognition--Property Taxes, by modifying the term available to mean "collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period." "The term available is defined differently for property taxes than it is for all other revenues," said Ken Schermann, GASB GASB Governmental Accounting Standards Board senior project manager. "The GASB believes a consistent definition should be applied to all types of nonexchange transactions." Comments on the proposal are due by August 29. One copy of the ED is available from the GASB order department by calling 203-847-0700, ext. 555. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion