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Farhat Lectures. The # 1 CPA & Accounting Courses
United States
Приєднався 3 лис 2006
My UA-cam channel offers a growing number of free accounting lectures and accounting courses that cover college level Accounting courses including Financial Accounting, Managerial Accounting, Intermediate Accounting, Advanced Accounting, Taxation, Auditing, Cost Accounting and CPA prep material.
Not every student has the same pace of learning and students who need extra time to understand certain concepts may be left behind. Some students may be lacking prerequisite knowledge from previous courses or they may be intimidated by asking clarification questions in class. Also, scheduling may limit access to classes for those who are working part-time or full-time jobs. www.farhatlectures.com offers open Accounting instructional videos to learners who want to study at their own pace in and outside the classroom. Any student around the world who is struggling to understand a particular Accounting concept or juggling classes, a job, and family responsibilities can take advantage.
Not every student has the same pace of learning and students who need extra time to understand certain concepts may be left behind. Some students may be lacking prerequisite knowledge from previous courses or they may be intimidated by asking clarification questions in class. Also, scheduling may limit access to classes for those who are working part-time or full-time jobs. www.farhatlectures.com offers open Accounting instructional videos to learners who want to study at their own pace in and outside the classroom. Any student around the world who is struggling to understand a particular Accounting concept or juggling classes, a job, and family responsibilities can take advantage.
Permanent Funds. Governmental Accounting
In this video, we discuss permanent funds.
Click to start your free trial: farhatlectures.com/
Understanding Permanent Funds
Permanent funds are a type of fund commonly used by governmental entities to account for resources that are legally restricted in such a manner that only earnings, and not principal, can be expended for the purposes specified by the grantor or governing legislation. These funds are designed to ensure that certain assets are preserved indefinitely, typically for generating income to fund specific public programs.
1. Nature and Purpose of Permanent Funds
Permanent funds are established when a government or nonprofit entity receives a donation or other funding source with stipulations that the principal amount cannot be spent, only the investment income generated from it. This setup is similar to an endowment in the private sector.
Example: A city might receive a donation to a permanent fund where the principal is to remain intact forever, but the interest income generated can be used annually to support public park maintenance.
2. Key Features of Permanent Funds
Principal Preservation: The principal amount of the fund must remain intact. This principal is not available for spending and must be invested to generate income.
Use of Income: The income generated from the principal can be used according to donor specifications or legal restrictions. Typically, this involves funding public activities or projects without affecting the fund’s principal.
Legal and Regulatory Compliance: The management of permanent funds must comply with the relevant laws and regulations, which might dictate investment strategies, allowable expenditures, and reporting requirements.
3. Financial Reporting and Management
Accounting Method: Permanent funds are accounted for using the economic resources measurement focus and the modified accrual basis of accounting, similar to other governmental funds.
Reporting Requirements: Governments must report permanent funds in their financial statements, detailing the fund balance that is non-spendable (the principal) and any spendable amounts derived from interest or other income.
Investment Policy: Entities managing permanent funds must often follow a conservative investment policy to minimize risks and ensure that the principal is preserved over time.
4. Differences from Other Governmental Funds
Comparison to Special Revenue Funds: Unlike special revenue funds, which are used to account for proceeds that are restricted or committed to expenditure for specified purposes, permanent funds ensure the principal is never spent.
Similarities to Endowment Funds: They are similar to endowments in that both involve a principal amount that must be preserved; however, endowments are typically used by private sector nonprofits, while permanent funds are used by governmental entities.
5. Challenges in Managing Permanent Funds
Investment Management: Balancing the need to preserve capital with the requirement to generate adequate income can be challenging, especially in volatile or low-interest-rate environments.
Regulatory Compliance: Ensuring compliance with the terms set by donors or legal stipulations requires diligent management and oversight.
Transparency and Accountability: Governments need to maintain high levels of transparency and accountability in managing these funds to retain public trust and meet legal requirements.
6. Importance of Permanent Funds
Permanent funds play a critical role in financing public programs sustainably. By providing a source of income without depleting the original assets, these funds help support long-term projects and services that benefit the community. They are particularly important for funding initiatives that require ongoing financial resources, such as scholarships, park improvements, and cultural events.
Conclusion
Permanent funds are an essential tool for governments to manage resources intended to benefit the public indefinitely. Properly managed, these funds provide a stable financial base for funding public programs and projects while preserving the wealth of communities for future generations. Understanding how to effectively establish, manage, and report on these funds is crucial for public financial managers and policymakers.
#accountingmajor #accountingstudents #cpaexam
Click to start your free trial: farhatlectures.com/
Understanding Permanent Funds
Permanent funds are a type of fund commonly used by governmental entities to account for resources that are legally restricted in such a manner that only earnings, and not principal, can be expended for the purposes specified by the grantor or governing legislation. These funds are designed to ensure that certain assets are preserved indefinitely, typically for generating income to fund specific public programs.
1. Nature and Purpose of Permanent Funds
Permanent funds are established when a government or nonprofit entity receives a donation or other funding source with stipulations that the principal amount cannot be spent, only the investment income generated from it. This setup is similar to an endowment in the private sector.
Example: A city might receive a donation to a permanent fund where the principal is to remain intact forever, but the interest income generated can be used annually to support public park maintenance.
2. Key Features of Permanent Funds
Principal Preservation: The principal amount of the fund must remain intact. This principal is not available for spending and must be invested to generate income.
Use of Income: The income generated from the principal can be used according to donor specifications or legal restrictions. Typically, this involves funding public activities or projects without affecting the fund’s principal.
Legal and Regulatory Compliance: The management of permanent funds must comply with the relevant laws and regulations, which might dictate investment strategies, allowable expenditures, and reporting requirements.
3. Financial Reporting and Management
Accounting Method: Permanent funds are accounted for using the economic resources measurement focus and the modified accrual basis of accounting, similar to other governmental funds.
Reporting Requirements: Governments must report permanent funds in their financial statements, detailing the fund balance that is non-spendable (the principal) and any spendable amounts derived from interest or other income.
Investment Policy: Entities managing permanent funds must often follow a conservative investment policy to minimize risks and ensure that the principal is preserved over time.
4. Differences from Other Governmental Funds
Comparison to Special Revenue Funds: Unlike special revenue funds, which are used to account for proceeds that are restricted or committed to expenditure for specified purposes, permanent funds ensure the principal is never spent.
Similarities to Endowment Funds: They are similar to endowments in that both involve a principal amount that must be preserved; however, endowments are typically used by private sector nonprofits, while permanent funds are used by governmental entities.
5. Challenges in Managing Permanent Funds
Investment Management: Balancing the need to preserve capital with the requirement to generate adequate income can be challenging, especially in volatile or low-interest-rate environments.
Regulatory Compliance: Ensuring compliance with the terms set by donors or legal stipulations requires diligent management and oversight.
Transparency and Accountability: Governments need to maintain high levels of transparency and accountability in managing these funds to retain public trust and meet legal requirements.
6. Importance of Permanent Funds
Permanent funds play a critical role in financing public programs sustainably. By providing a source of income without depleting the original assets, these funds help support long-term projects and services that benefit the community. They are particularly important for funding initiatives that require ongoing financial resources, such as scholarships, park improvements, and cultural events.
Conclusion
Permanent funds are an essential tool for governments to manage resources intended to benefit the public indefinitely. Properly managed, these funds provide a stable financial base for funding public programs and projects while preserving the wealth of communities for future generations. Understanding how to effectively establish, manage, and report on these funds is crucial for public financial managers and policymakers.
#accountingmajor #accountingstudents #cpaexam
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Відео
Reorder Point and Safety Stock In Inventory Management
Переглядів 27923 години тому
In this video, we discuss reorder point and safety stock in inventory management. Click to start your free trial: farhatlectures.com/ Understanding Reorder Point and Safety Stock Effective inventory management is crucial for maintaining business operations without interruptions or excess overhead. Two critical concepts in inventory management are the reorder point and safety stock. Both play vi...
Inventory Errors Explained. Intermediate Accounting. CPA exam FAR.
Переглядів 559День тому
In this video, we cover inventory errors. Start your free trial: farhatlectures.com/ Understanding Inventory Errors and Their Impact on Financial Statements Inventory errors can significantly affect a company's financial statements, impacting the balance sheet, income statement, and even cash flow statements. These errors arise from miscounting, misclassification, incorrect pricing, or theft, a...
Discontinued Operation Income Statement.
Переглядів 679День тому
In this video, we discuss discontinued operation. Start your free trial: farhatlectures.com/ Understanding Discontinued Operations Discontinued operations refer to a significant component of a business-such as a department, segment, or subsidiary-that has been sold, abandoned, or otherwise disposed of, or is held for sale. The classification of a part of a business as a discontinued operation h...
CPA Live Review Session: 👉https://shorturl.at/EZagb
Переглядів 369День тому
Click to choose your CPA live review session: 👉shorturl.at/EZagb #cpaexam #cpaexaminindia #cpareviewcourse
Special Revenue Funds. Governmental Accounting.
Переглядів 38214 днів тому
In this video, we discuss special revenue funds as covered in governmental accounting course. Click to start your free trial: farhatlectures.com/ Understanding Special Revenue Funds Special revenue funds primarily used by governmental entities to account for specific revenue sources that are legally restricted or committed to spending on particular purposes, other than debt service or capital p...
Introduction to the Income Statement.
Переглядів 79614 днів тому
In this video, we discuss an overview of the income statement. Click to start your free trial: farhatlectures.com/ Understanding the Income Statement An income statement, also known as a profit and loss statement (P&L), is one of the fundamental financial statements used by companies to track revenues, expenses, and profitability over a specific period. This statement provides valuable insights...
Agreed Upon Procedures AUP Attestation Engagement. CPA Exam AYD
Переглядів 37521 день тому
In this video, we explain we explain agreed upon procedures as an attestation engagement covered on the CPA exam. Start your free trial: farhatlectures.com/ Understanding Agreed-Upon Procedures (AUP) Agreed-Upon Procedures (AUP) refer to an engagement in which an auditor is hired by a client to perform specific tests and procedures and report on the findings. Unlike traditional audits, AUP enga...
Balanced Scorecard Explained
Переглядів 46221 день тому
In this video, we explain the balanced scorecard. Start your free trial: farhatlectures.com/ he Balanced Scorecard is a strategic planning and management system used extensively in business and industry, government, and nonprofit organizations worldwide. It helps organizations align business activities to the vision and strategy of the organization, improve internal and external communications,...
Inventory Turnover and Days Sales in Inventory.
Переглядів 48021 день тому
In this video, we explain inventory turnover and days sales in inventory. Start your free trial: farhatlectures.com/ Inventory turnover and days sales in inventory (DSI) are two crucial metrics used in business management to assess the efficiency of inventory management. These metrics provide insights into how effectively a company is managing its stock, from purchasing to sales. Understanding ...
Lower of Cost or Market. LCM
Переглядів 38921 день тому
In this video we cover lower of cost or market. Start your free trial: farhatlectures.com/ Understanding the Lower of Cost or Market (LCM) Rule The Lower of Cost or Market (LCM) is a conservative accounting principle that companies use to value and report the cost of inventory. LCM is used to ensure that the inventory is not overstated on the financial statements. It dictates that inventory sho...
Tax Methods: Cash and Accrual Examples
Переглядів 63428 днів тому
In this video, we work an example dealing with tax methods. Start your free trial: farhatlectures.com/ Tax Accounting Methods: Cash and Accrual In accounting, the method you choose for recording transactions can significantly affect your financial reporting and tax liabilities. The two primary accounting methods used for tax purposes are the cash method and the accrual method. Each method has s...
FICA Taxes: Social Security and Medicare Tax.
Переглядів 67528 днів тому
In this video, we explain FICA taxes which include social security and Medicare taxes. Click to start your free trial: farhatlectures.com/ Understanding FICA Taxes: Social Security and Medicare FICA taxes, an acronym for the Federal Insurance Contributions Act, represent the federal payroll taxes deducted from employees' paychecks to fund Social Security and Medicare programs in the United Stat...
Security Assessment: Evaluator, Process and Evidence. Information Systems and Controls ISC.
Переглядів 209Місяць тому
Security Assessment: Evaluator, Process and Evidence. Information Systems and Controls ISC.
SOC Risk Assessment. Information Systems and Controls ISC CPA Exam
Переглядів 190Місяць тому
SOC Risk Assessment. Information Systems and Controls ISC CPA Exam
Tax Accounting Methods: Cash and Accrual.
Переглядів 537Місяць тому
Tax Accounting Methods: Cash and Accrual.
SOC Engagement Evaluating the Evidence. Information Systems and Controls ISC CPA Exam
Переглядів 161Місяць тому
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Written Representation REP Letter SOC Engagement Information Systems and Controls ISC CPA Exam
Переглядів 133Місяць тому
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Contribution Revenue Not for Profit CPA Exam FAR
Переглядів 713Місяць тому
Contribution Revenue Not for Profit CPA Exam FAR
Other Comprehensive Income OCI Accumulated Other Comprehensive Income
Переглядів 548Місяць тому
Other Comprehensive Income OCI Accumulated Other Comprehensive Income
How to Solve CPA Exam Simulations. 👉farhatlectures.com
Переглядів 1,3 тис.Місяць тому
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SOC Attestation Engagement Independence. Information Systems and Controls ISC CPA Exam
Переглядів 229Місяць тому
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Performance Materiality Tolerable Misstatement Audit Course CPA Exam AUD
Переглядів 364Місяць тому
Performance Materiality Tolerable Misstatement Audit Course CPA Exam AUD
SOC Engagement Evaluating Design of Controls. Information Systems and Controls ISC CPA Exam
Переглядів 207Місяць тому
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IFRS 15 Revenue Step 4 Allocate Transaction Price to Performance Obligations. CPA Exam
Переглядів 735Місяць тому
IFRS 15 Revenue Step 4 Allocate Transaction Price to Performance Obligations. CPA Exam
Tooo fast explanation and really really bad hand writing 👎🏻👎🏻
Hi sir
welp, my journey begins.
Thank you so much 🙏🏼
Most welcome. Please check my website for more. Start your free trial : farhatlectures.com/
Sir why are we calculating cumulative probability each outcome is different right?
I can't thank you enough. Awesome explanation.
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The donated asset needs to be carried at FMV in the BS? What if the FMV differs at YE? Do we revalue the asset at YE? Or just revalue it at the time of sale?
15:03 Another method
Thanks for the videos. I see it is the snapshots and the example of my accounting book of my class. So , it is serving me a lot!
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Hi Sir. Assuming I have a foreign currency payable as at close of year 2022. At 2022 year I have found the difference between the spot rate and the closing rate and have recognised my unrealised exchange loss or gain. This loan still remains at 2023 year end. At year end I have used the closing rate to convert the loan to my presentation currency, will the exchange difference be between the opening balance of the loan and closing balance or rather I should take the spot rate I took the loan at in 2022 and then the closing rate of 2023 to convert the loan amount and then the difference between that and what is is in the books as the loan amount in 2023 is what becomes exchange loss? I would be grateful if you could clarify this for me.
This is extremely helpful, especially with the multiple examples. Thank you very much
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Where do I record suspended loss and how to apply the loss in the future year? Thank you!
Hi, so exactly how to elect not to carryback? On what form? Tax form? Thank you!
Galatoomi farree kiyyaa ❤❤❤❤❤
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Thank you so much for this video. The video on becker was confusing and this broke it down in a way that was way easier to grasp.
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this is the most informative video I've found online for my situation. Thank you.
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Thank you Professor Farhat!!! I have subscribed to your services before but this time I'm buckling down and took time off from work to study for the CPA exams. I don't usually follow lectures so I tend to read a lot but your videos are the exception! Truly a big help!
Most welcome.
Thank u so much 🙏
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Thank you
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Hi Sir if both are having a same currency dealings and bank accts then they will receive fcy in the fcy bank accounts. So we will receive and pay from the same account, then EX fluctuations effect is no longer there to the extent of Revenue and Cost, but only to the extent on GM derived which If I sell to bank if required. Secondly we are translating all our fcy bank accounts on monthly basis for MIS reporting and on yearly basis too. We also do Dr's, Crs year end entry for fcy transactions through a control account and take the ex gain or loss for the year end. I don't want to take transaction date for all receipts and payments on day to day basis
Please explain how to deal when the FY is different from USA. viz April-March
Hi Professor, is it fair to say that there is no appreciation recapture for car depreciation? Also, there is a limit rule for the car depreciation, how do I also compare the best depreciation method with standard mileage expenses? Thanks!
Could you please show all the information on the tax forms? Thank you so much.
I like how you are going step-by-step. However, I feel you can do a better job explaining each concept and how the numbers are usually determined. I also think with the 2,535 example, when you multiply by 10 and multiply by 6, you use different values for the units ($2,535.7 vs $2,535). I think you should use the same unit for all values. I also feel you can write more neater, the writing is unclear and makes it hard for me to understand. When you put 750x 4=3,000, the 4 looked like a 6 to me at first. Please take these into consideration when making future videos.
Good stuff
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For insurance claim part the last line mentions ‘The property insurance carrier further indicated that any payment is subject to the $125,000 deductible included in the property insurance policy.’ What does this mean? Is it like they would deduct $125k from the claim and provide the remaining amount? If so why don’t we accrue this amount?
Can you put the link to Part 2 (Protect) please?
Thank you for your service! Helps a lot!
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Thank you ❤
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How about divorced parents? The one who pays claim the credit or the one has custody for the year?
Hi Professor, does summer camp expenses count as childcare credit? Thank you so much!!
Thanks You so much. Is very helpful
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Thank you very much for these lectures !
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Does this annualized method also work for individual taxpayers? to be able to estimate passive income concerning investments, such as interest, dividends, etc.?
Great explanation in theory works amazing. But a ERP should require a few steps extra to complete the cycle
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how come this man is not ruling the charts?
Thank you so much for uploading this video. It's hard to get quality lectures at Uni these days. Keep up the good work.
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Under the oci column. Why are losses positive and gains negative?
During the current year, Bay Co. constructed machinery for its own use and for sale to customers. Bank loans financed these assets both during construction and after construction was complete. How much of the interest incurred should be reported as interest expense in the year-end income statement? Interest incurred for machinery for own use Interest incurred for machinery held for sale A. All interest incurred Interest incurred after completion B. All interest incurred All interest incurred C. Interest incurred after completion Interest incurred after completion D. Interest incurred after completion All interest incurred
I have a question, do you capitalize int on asset hold for sale and for own use?
She did a real good job of explaining this
She?! Most welcome. Please check my website for more. Start your free trial : farhatlectures.com/
@@AccountingLectures 😂😂😂😂 I meant HE!!!
@@AccountingLectures btw sir , could you include section 382 limitations into your TCp program ?
do you have more videos about capital strucutre and financial leverage in your website subscription?
Very detailed explanation, thank you
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Correct me if I'm wrong, but under ASU 2016-01, the reporting of unrealized gains or losses on equity security investments changes. Specifically, all equity security investments presented at fair value must be accounted for using the Trading method. This means that changes in the values of these investments are recorded in current period earnings, impacting net income directly. Therefore, under this new standard, unrealized losses on available-for-sale debt securities would not be reported net of tax in other comprehensive income (OCI) but would affect net income instead...not net of taxes..
I see things are working sir, congratulations.
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How did you get to $178,000 of "paid-in capital in excess of par" after the executives exercised the options?
Imo best is that Students should Suggest some tricky MCQs ie Say MCQ 00913, 00916 from the Topic of Subsequent Events . Last but not the least.. Explanation of All MCqs of certain topics which are typical to INDIANs like Say NFP and Govt Accounting. Best is to categorise Topic wise and then post it.
This made more sense than my textbook. I was curious do you also have courses on the series 7 licensing?
Thanks for the clear and simple explanation of the repo transaction. However, there's an error in the T account. The additional amount (credit side) should be 11,000. The total is still the same, but you inadvertently wrote 10,000 instead of 11,000.
I like your vedio tanks teacher
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