Can adjustments involving revenues and expenditures from prior periods be made to the fund balance account in a typical conversion worksheet?

In a typical conversion worksheet, adjustments to the fund balance account can indeed be made for revenues and expenditures from prior periods. This is an essential feature because the purpose of a conversion worksheet is to reconcile the fund-based financial statements with the government-wide financial statements, ensuring that all financial information is accurately reflected.

When there are adjustments from prior periods, such as correcting errors in revenue recognition or expenditure reporting, these adjustments are necessary to accurately display the financial position and performance of the entity. Adjusting the fund balance allows for a correct and fair presentation of the government’s financial status.

This practice also adheres to the principles of full disclosure and transparency in financial reporting, ensuring that stakeholders have a complete understanding of the financial activities of the government. Consequently, such adjustments are not only allowed but are an important part of the conversion process to reflect the true state of financial affairs.