[YouCanDoIt]

I am confused regarding LONG TERM OBLIGATIONS and CAPITAL ASSETS/LEASES presentation on the FUND-f/s.

As per my understanding, long term obligations are NOT presented on Fund F/S at all, but are presented on the Government-wide F/S instead. So if a government OR a proprietary fund issues a 10-year bond @ $200,000, to fulfill some of their cash needs, then on the Fund level, how would we present this???
Do we present the current principal + interest due?

Or, does this bond issue go to the Debt Service Fund?

On the government-wide F/S , I believe we would state the entire Bond Payable Obligation at its 200,000 value as non-current?

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For Capital assets/leases:
On Fund level: we show the purchase of a capital asset as an EXPENDITURE?
We do/don’t do depreciation at fund level?
How does this tie into government-wide F/S
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If anyone has an example to just makes things easier to show the transition from Fund to Govt.-wide, would be really helpful.

Thank You

FAR: 76
REG: Currently studying
AUD:
BEC:

[PJ]

The issuance of long-term debt would be recorded on the funds as an increase in cash and as an other financing source. It could be but would not necessarily recorded in the debt service fund. I work in governmental auditing and some of our clients have a fund dedicated to each bond issuance; many do not even have a debt service fund.

The bonds would be split into current and non-current liabilities on the statement of financial position(the balance sheet for government-wide FS).

[PJ]

The purchase or construction of capital assets would be accounted for as expenditures at the fund level.

No depreciation is recorded at the fund level.

A reconciliation between the balance sheet (fund level) and the statement of net position (government-wide) is included and this is where capital assets/leases/other long term debt get added back and the fund balance is reconciled to the net position.

[YouCanDoIt]

@PJ, thank you SO MUCH for all that clarification,really appreciate it.

FAR: 76
REG: Currently studying
AUD:
BEC:

[Author]

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