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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

General Accounting


Accounts receivable is defined as an asset account reflecting amounts owed from private persons or organizations for goods and services furnished by a government (but not including amounts due from other funds of the same government). Amounts due from other funds or from other governments are reported separately.

Recording uncollected revenues results in the recognition of receivables and either revenue, unearned revenue or deferred inflows of resources. Receivables generally arise from the sale of goods, rendering of services, federal programs and taxes imposed by the government. Receivables also come from such other sources as overpayments of grants or entitlements, loans, notes or similar items that must be recorded in the accounting records.

To measure financial position and operating results, use either the modified accrual or the full accrual basis of accounting. The Modified Accrual Basis recognizes revenue in the accounting period that it becomes available and measurable. The full Accrual Basis recognizes revenue in the accounting period that it is earned and becomes measurable.

Report receivables at the net amount expected to be collected, after allowances for uncollectibles. The amount of the allowance can be presented on the balance sheet parenthetically, as a separate entry deducted from the receivables or in the notes to the financial statements. If the amount is considered material, separate entries can be presented for receivables resulting from:

  • Taxes
  • Service charges
  • Federal programs
  • Intergovernmental transactions
  • Special assessments
  • Interest and dividends
Glenn Hegar
Texas Comptroller of Public Accounts
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