FAR | Reconciliation of Governmental Financials

This topic has 2 replies, 2 voices, and was last updated 9 years, 8 months ago by Anonymous.

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August 20, 2014 at 9:22 pm #187937

Anonymous
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Hello All, can someone please tell me why payment of principal on debt service added in reconciliation of Statement of Revenues, Expenditures and Changes in Fund balances with Statement of Activities? I did not get the rationale behind it.

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August 20, 2014 at 9:26 pm #587945

Guti
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Because debt service is recorded as an Expenditure when paid, and on Gov wide it should be a reduction of a liability, and not an expense.

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August 20, 2014 at 9:30 pm #587946

Anonymous
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Thanks Gian. The addition makes sense to me now..
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