tailieunhanh - Lecture note Government and not-for-profit accounting: Concepts and practices (7/e) – Chapter 7: Capital assets and investments in marketable securities

Chapter 7 - Capital assets and investments in marketable securities. In this chapter, the learning objectives are: Why and how governments account for capital assets in both fund and government-wide statements; why and how governments account for transactions involving donated assets, trade-ins, and collectibles;. | Chapter 7 Capital Assets and Investments in Marketable Securities © 2016 John Wiley & Sons, Inc. All rights reserved. 1 Learning Objectives Why and how governments account for capital assets in both fund and government-wide statements Why and how governments account for transactions involving donated assets, trade-ins, and collectibles GASB’s controversial provisions regarding infrastructure What special problems asset impairments create How investments should be reported Why investments in marketable securities may be of high risk © 2016 John Wiley & Sons, Inc. All rights reserved. 2 General Capital Assets Associated with the government as a whole, rather than with any specific fund Non financial in character. Distinguished from other capital assets that are specifically associated with activities reported in proprietary and fiduciary funds. Examples: The City of Austin defines capital assets as assets with an initial individual cost of $1,000 or more and an estimated useful life of | Chapter 7 Capital Assets and Investments in Marketable Securities © 2016 John Wiley & Sons, Inc. All rights reserved. 1 Learning Objectives Why and how governments account for capital assets in both fund and government-wide statements Why and how governments account for transactions involving donated assets, trade-ins, and collectibles GASB’s controversial provisions regarding infrastructure What special problems asset impairments create How investments should be reported Why investments in marketable securities may be of high risk © 2016 John Wiley & Sons, Inc. All rights reserved. 2 General Capital Assets Associated with the government as a whole, rather than with any specific fund Non financial in character. Distinguished from other capital assets that are specifically associated with activities reported in proprietary and fiduciary funds. Examples: The City of Austin defines capital assets as assets with an initial individual cost of $1,000 or more and an estimated useful life of greater than one year. The City of Houston defines capital assets as assets with an initial cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of four years. © 2016 John Wiley & Sons, Inc. All rights reserved. 3 Common Classifications of GCAs Land Buildings Equipment Improvements to land and buildings Construction in progress Works of art Historical treasures Infrastructure (., roads, bridges, tunnels, drainage system) Intangible assets © 2016 John Wiley & Sons, Inc. All rights reserved. 4 Acquisition and Common Financing Sources for GCAs & DCAs Acquisition: Purchase, Construction, Contributed/Donated (DCA), Annexed, Capital Leases, Foreclosure, Eminent domain, Escheat Financed: Tax-supported bonds, Grants from other governmental units, Transfers from other funds, Special assessment bonds or taxes, Capital leases © 2016 John Wiley & Sons, Inc. All rights reserved. 5 Accounting for GCAs Government-wide Statements: Capitalized in the governmental .