Question

1. Revenues derived from specific programs or functions, or provided for those programs or functions by outside grantors or contributors should be reported in the government-wide statements of activities as program revenues.
   1. True
   2. False

Answer 1

Answer:a) true

GASB Statement 34 introduces a number of new reporting concepts for revenues in the governmentwide statements. Essentially, revenues must be classified as either program or general revenues on the Statement of Activities.

Program revenues are revenues that are directly attributable to a specific functional activity. GAAP requires these revenues to be presented separately in the appropriate functional areas, providing a calculation of net expense for each activity. This net expense often represents the level of support required from the government's own resources. Program revenues include fees collected from those who benefit from the program, grants, and other contributions required by the resource provider to support a specific activity.

Program revenues are reported at gross amounts. The Statement of Activities also reports program expenses net of applicable program revenues. GASB Statement 37 clarified that difference captions and additional categories for program revenues may be used.