Forest City has recently implemented GAAP reporting and is attempting to determine which of the following special revenue funds should be classified as major funds and therefore be reported in separate columns on the balance sheet and statement of revenues, expenditures, and changes in fund balance...

DATE xxx MEMO TO City Manager Forest City FROM Independent Auditor RE Major Special Revenue Funds As ...

Forest City has recently implemented GAAP reporting and is attempting to determine which of the following special

Question:

Forest City has recently implemented reporting and is attempting to determine which of the following special revenue funds should be classified as €œmajor funds€ and therefore be reported in separate columns on the and statement of revenues, expenditures, and changes in fund balances for the governmental funds. As the city€™s external auditor, you have been asked to provide a rationale for either including or excluding each of the following funds as a major fund. Prepare a short report to the city manager that gives your recommendation and explanation. Selected information is providedbelow.

Forest City has recently implemented GAAP reporting and is attempting

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...