ACCY161Fa10_Notes11 (1)

ACCY161Fa10_Notes11 (1) - ACCY 161 Fall 2010 Notes #11...

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ACCY 161 – Fall 2010 Notes #11 Chapter Six - Debt Service Fund and Long Term Liabilities ACCY161Fa10_Notes11 Page 1 of 1 A few points: 1. Since the debt is shown on the government-wide statements and these statements are new, where was the debt shown on the funds statement in prior years? It used to be in the General Long-Term Debt Account Group but that was eliminated with GASB 34. This was done with the disclosure in the government-wide statements being adequate. 2. Types of long-term debt: a. General obligation bonds – known as GO (the letters “g” “o,” and not the word “go”) bonds b. Revenue bonds c. Capital lease obligations d. Certificates of participation 3. Judgments and claims: compensated absences, legal judgments, self-insurance claims 4. Debt limit (page 212): Total amount of debt by type of debt that is allowed to be outstanding at any time. It applies to cities and counties and is related to some percentage of assessed valuation of the property within the city or county. No debt limit for the state.
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