Non-reciprocal inter-fund activities include inter-fund transfers of assets without repayment and interfund reimbursements.
Interfund transfers of assets without repayment occur when one fund transfers cash or goods to another fund without the expectation of repayment. This can happen for various reasons, such as the need to provide funding for specific programs or projects within another fund.
In government organizations, the modified approach for depreciation does not eliminate depreciation charges due to the assumption of indefinite useful life for buildings. Rather, the modified approach for depreciation is based on the concept of "modified accrual accounting" used in governmental accounting.
Proprietary funds, which include enterprise funds and internal service funds, utilize the economic resources measurement focus and accrual basis of accounting. This means that they account for transactions and events based on the impact they have on the fund's total economic resources.
