A city engages in an in-substance defeasance of long-term bonds and accordingly invests in, and sets aside, the long-term securities necessary to make the required interest and principles payments on the debt to be retired. Should, and if so under what circumstances, the city report the securities on its ﬁnancial statements?
Answer to relevant QuestionsWhy are general capital assets recorded in an “off the balance sheet” list or schedule, rather than a fund?What are deferred maintenance costs, and when and how must a government report them (as they relate to infrastructure) in its ﬁnancial statements?General capital assets are accounted for differently in fund and government-wide ﬁnancial statements.A city engaged in the following transactions during a year:1. It acquired computer equipment at a cost of $40,000.2. It ...In the management discussion and analysis accompanying its 2015 ﬁnancial statements, Tiber County reported that ‘‘for the ﬁfth consecutive year revenues exceeded expenditures.’’ However, a note included in ...Clarkstown State University acquired specialized laboratory equipment with the expectation that it would be used to perform approximately 3,000 tests per year over a 10-year period. The cost was $600,000. After the equipment ...
Post your question