La. Admin. Code tit. 4 § V-3107

Current through Register Vol. 50, No. 8, August 20, 2024

Section V-3107 - Revenues

A. Revenues associated with the economic activity of a particular fiscal year must be recognized (accrued) and reported in that fiscal year:

1. when the revenues are collected during the fiscal year to which they are associated; or

2. when the revenues are collected within 45 days after the end of the fiscal year to which they are associated.

B. Certain revenues may be excluded from the accrual requirements outlined in §3107 A, provided:

1. the amount is not material or the cost of attaining the data for accruing the revenue exceeds the benefits derived from its accrual. For purposes of the state of Louisiana's financial statement materiality is generally defined as less than 1/2 of 1 percent of the total estimated revenues of that fund;

2. the amount is not measurable and cannot be reasonably estimated with an acceptable degree of accuracy;

3. the revenue will not be available (collected) within the fiscal year or soon enough after the fiscal year end to be used to pay liabilities of that fiscal year.

C. Specified exceptions to the 45 day cut-off rule (§3107. A.2 to be included are as follows:

1. gas royalties for the month of June when the revenue from this source is material and predictable or measurable;

2. natural gas franchise tax due for the quarter ending June 30 of each year but does not become delinquent until 60 days thereafter.

D. Refunds of revenue are to be paid from current year receipts; however, refunds paid during the 45-day period at the end of each fiscal year, which are attributable to prior year activities, must be accumulated separately and reported as a liability on the appropriate fiscal year end financial statement.

La. Admin. Code tit. 4, § V-3107

Promulgated by the Office of the Governor, Division of Administration, LR 10:450 (June 1984).

AUTHORITY NOTE: Promulgated in accordance with R.S. 39:91, R.S. 39:92.