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Unformatted text preview: Chapter 05 - Accounting for General Capital Assets and Capital Projects 5-1 CHAPTER 5: ACCOUNTING FOR GENERAL CAPITAL ASSETS AND CAPITAL PROJECTS OUTLINE Number Topic Type/Task Status (re: 14/e) Questions: 5-1 Defining and reporting general capital assets Define and explain New 5-2 Capital asset disclosures Explain Same 5-3 Modified approach for infrastructure Explain New 5-4 Capital lease accounting Describe Same 5-5 Intangible assets Compare New 5-6 Use of capital projects funds Explain New 5-7 Encumbrances Explain Same 5-8 Construction work in progress Explain Same 5-9 Asset impairment Explain New 5-10 Special assessment capital projects Explain New Cases: 5-1 Modified approach for infrastructure assets Evaluate, write Same 5-2 Options for financing public infrastructure Evaluate, explain Same 5-3 Recording and reporting damaged capital assets Evaluate, explain New Exercises/Problems: 5-1 Examine the CAFR Examine Same 5-2 Various Multiple Choice 5-2 revised 5-3 General capital assets Journal Entries New 5-4 Capital asset disclosure schedule Financial Statement New 5-5 Lease classification and accounting Calculate; JEs Same 5-6 Asset impairment JEs; Reporting Same 5-7 Capital projects fund JEs New 5-8 Statement of revenues and expenditures FS; Explain New 5-9 Construction fund JEs & FS Revised 5-10 Capital project transactions JEs & FS Same Chapter 05 - Accounting for General Capital Assets and Capital Projects 5-2 CHAPTER 5: ACCOUNTING FOR GENERAL CAPITAL ASSETS AND CAPITAL PROJECTS Answers to Questions 5-1. General capital assets are those assets acquired with the resources of governmental funds and that are reported as assets in the Governmental Activities column of the government- wide financial statements. Capital assets are reported at historical cost. Those capital assets identified as depreciable are shown net of accumulated depreciation. The resources used by the governmental funds to acquire a general capital asset are reported as an expenditure of the governmental fund acquiring the asset. 5-2. Capital asset disclosures required by the GASB are quite well illustrated by the City and County of Denvers capital asset disclosures shown in Illustration 5-2. In brief, the disclosures should include policies for capitalizing assets and for estimating the useful lives of depreciable assets. In addition, the disclosures should include: (1) beginning-of- year and end-of-year balances showing accumulated depreciation separate from historical cost, (2) capital acquisitions during the year, (3) sales or other dispositions during the year, (4) depreciation expense showing amounts charged to each function in the statement of activities, and (5) disclosures regarding collections of art or historical treasures....
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- Fall '08