Chapter 17, Problem 17.12Q

To determine

Introduction: Inter-fund activities are resources flows between fund entities. In a consolidated financial statement for a commercial entity, intercompany transactions are eliminated to report only the impact of transactions with external entities. Governmental accounting on the other hand, requires the separate maintenance and reporting of inter-fund items. The government body must approve any inter-fund transfers and transactions to provide a public record and to prevent misrepresentation of fund uses.

GASB 34 establishes four types of inter-fund activities: (1) inter-fund loans; (2) inter-fund services provided and used; (3) inter-fund transfers; and (4) inter-fund reimbursements.

The difference between an inter-fund services provided and used and an inter-fund transfers.