Government-Wide Conversion and Reconcili

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Question

Why do capital outlay and depreciation move in opposite directions on the change reconciliation?

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Answer

Capital outlay is added back; depreciation is subtracted.

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Question

How do unavailable revenues affect the government-wide conversion?

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Answer

Add them, because full accrual recognizes them earlier.

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Question

Why are accrued interest, compensated absences, and pension or OPEB expense subtracted in the change reconciliation?

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Answer

They are recognized under full accrual but not yet in the funds.

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Question

Why is depreciation recorded on the conversion worksheet?

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Answer

Governmental funds do not depreciate capital assets.

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