Rift Valley University

Department: Accounting and Finance

Department Accounting and Finance
Program BA degree in Accounting and Finance
Module Title Government and Non-profit Accounting
Module Non-Profit Sector Accounting
Module No and Module AcFn-3070
Code
Course Number AcFn3071
Course Title Accounting for Public sector and Civil society
ETCTS Credits 5
Contact Hours 3
Course Objectives and After successfully completing this course, the students should be able to:
Competences to be  Identify characteristics and types of government and Not-For-profit organizations (NFP);
Acquired  Understand the budgeting framework of governmental units and other non-profit organizations and help senior budget
officials of the same in developing budgets
 Distinguish the legal and economic substance of transactions as opposed to the nature of transactions in business
organizations;
 Record the transactions and present fairly the financial statements of governmental units and other non-profit
organizations in conformity with legal requirements and accepted accounting principles
Course Description The course is intended to introduce the accounting and reporting concepts, standards and procedures applied to governmental
units and not –for –profit (NFP) organizations. The course reflects the distinction between legal form of transactions as
opposed to the accounting system for business enterprises, and the substance of transactions.
WEEKS Course Contents Reading
2WEEKS 1. Overview of Financial Reporting for Governmental and NFP Entities
{1ST- 2ND } 1.1. Distinguishing characteristics of Governmental and Not- for- Profit entities.
1.2. Sources of financial reporting standards for Governmental and NFP entities in Ethiopia
1.3. Objectives of financial reporting in NFP entities
1.4. IPSAS versus IFRS
1.5. The Conceptual Framework for Public Sector Accounting [The IPSASB]
1.5.1. Objectives of financial reporting
1.5.2. Fundamental concepts
1.5.3. Recognition, measurement, and disclosure concepts
1WEEK 2. Principles of accounting and financial reporting of governmental entities
{3RD } 2.1. Activities of government
2.2. Summary statement of principles
2.3. Summary Accounting characteristics of fund types
2.4. Budgeting and uses of budget
2.5. Classification of budget
2.6. Approaches to budgeting
1WEEK 3. International Public Sector Accounting Standards [IPSAS]
{4TH } 3.1. Activities of Government
3.2. Summary statement of principles
3.3. Impairment of Non-Cash-Generating Assets [IPSAS 21]
3.4. Disclosure of Financial Information about the General Government Sector [IPSAS 22]
3.5. Revenue from Non-Exchange Transactions (Taxes and Transfers) [IPSAS 23]
3.6. Presentation of Budget Information in Financial Statements [IPSAS 24]
3.7. Cash Flow Statements [Cash Basis IPSAS]
1WEEK 4. Budgeting and Performance Reporting
{ 5TH } 4.1. Budgeting in the Public Sector
4.2. Classification of budget
4.3. Approaches to budgeting
4.4. Budgets and Outturn Reporting (IPSAS 24)
4.5. Performance Budgeting and Reporting
1WEEK 5. Accounting for General and Special Revenue Funds
{6TH- 7TH} 5.1. Definitions and purposes
5.2. Budgetary accounting
5.3. Revenue accounting
5.4. Expenditure accounting
 5.5. Financial statements
1WEEK 6. Accounting for Capital Project Fund
{8TH- 9TH} 6.1. Definitions and purposes
6.2. Classification of general capital assets
6.3. Sources and uses of cash flows
6.4. Methods to acquire general capital assets
6.5. Illustration on capital project fund
7. Accounting for Debt Service Fund
7.1. Definitions and purposes
7.2. General long-term liabilities
7.3. Sources and uses of cash flows
7.4. Illustration on debt service fund

{10TH } 8. Accounting for Internal Revenue Funds

81. Accounting principles of proprietary funds
82. Financial statements of proprietary funds
83. Illustrative entry for proprietary propriety funds
84. Financial statements of proprietary funds
{11TH } 9. Accounting for Fiduciary Funds
10. Features of fiduciary funds
11. Accounting principles of fiduciary funds
12. Accounting for agency fund
13. Accounting for trust funds
{12TH } 10. Accounting for Other Not-for-Profit Entities
10.1. Characteristics of Non-governmental NFP organizations
10.2. Charities and societies law in Ethiopia
10.3. Financial reporting and accounting for NGOs
{14TH } 11. Accounting and Reporting for the Federal Government of Ethiopia
a. Historical overview of Ethiopian Government Accounting System
b. Federal Government Financial Management Structure
c. FGE Chart of accounts
d. Overview of IBEX and IFMIS
e. Basis of accounting
f. Legal Framework of FGE Financial Administration
g. Monthly Reports
h. Annual Financial statements
i. Federal Audit report

Assessment/Evaluation
The evaluation scheme will be as follows:
Mid Assignme Assign Quiz1 Final Total
nt 1 ment
20% 10% 15% 5% 50% 100%
Work load in hours Hours Required
Total
Assessm Tutorial Self- Assignm Advisi ECTS
Hrs
Lectures Lab ents s Studies ent ng

64 20 10 16 52 - - 162 6
Text and reference books Text Book:
 Accounting for Governmental and Non-Profit Entities, 15th edition, by Wilson, Kattelus, Hay. McGraw-Hill/Irwin Inc.,
USA, 2010.
 Aggestam-Pontoppidan, C. (2015). Interpretation and Application of IPSAS. John Wiley and Sons.
 Freeman, R. J., Shoulders, C. D., Allison, G. S., Smith Jr, G. R., and Becker, C. J. (2014). Governmental and nonprofit
accounting: theory and practice. JPAEJOURNAL OF PUBLIC AFFAIRS EDUCATION VOLUME 20 NUMBER 3, 441.
Reference Proclamations
1. Proclamation No. 847/2014, Financial Reporting Proclamation, 2014.
2. Proclamation No. 621/2009, Charities and Societies Proclamation, 2009.
3. Proclamation No. 648/2009 The Federal Government of Ethiopia Financial Administration Proclamation