General Instructions Balance Sheet Reconciliations Page 8
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10conferences, service contracts.
3. The prepaid item must be recognized as an expense (and
removed from prepaid) in the period in which the goods or
services are received.
4. For prepaid transactions, the Details of Account must
provide full transaction details, ie. corporate or individual
names, date of transactions, amount, invoice or reference
number, and a description of the prepaid goods or services,
and the period that the goods or services will be received by
the University.
Inventory
1. Inventory accounts are assets, and are usually positive
(debit) amounts.
2. Inventoried items are goods held for future sale.
3. For inventories, the Details of Account must provide an
itemized list which includes the inventory category of items,
the year end valuations per certificates, inventory valuation
method, and general ledger balance per category.
Discrepancies must be explained.
Short Term Liabilities
1. Short Term Liability accounts are liabilities, and are usually
negative (credit) amounts.
2. Short term liabilities are amounts owed to a corporation or
individual, to be paid, or refunded in the case of deposits, at
a future date.
3. For short term liabilities, either the sub-module report is
required, or the Details of Account must provide full
transaction details, ie. corporate or individual names, date
of transactions, amount, invoice or reference number, and a
description of the amounts payable, and the period that the
goods or services will be paid by the University.
Deferred Revenue
1. Deferred revenue accounts are liabilities, and are usually
negative (credit) amounts.
2. Deferred revenue represents revenues received but not yet
earned.
3. For deferred revenue transactions, the Details of Account
must provide full transaction details, ie. corporate or
individual names, date of transactions, amount, invoice or
reference number, and a description of the type of revenue
being deferred, and the future period to which the revenue
relates.
Appendix B
Sample “Balance Sheet Account Reconciliation” Template
General Instructions Balance Sheet ReconciliationsV1.0.docx
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