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General Capital Assets; General Long-Term Liabilities; Permanent Funds. Chapter 9. Learning Objectives. Understand how to maintain GCA & GLTL information for reporting purposes Understand how to account for transactions affecting GCA & GLTL
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May be tangible or intangible
All general capital assets are capital assets, but not all capital assets are general capital assets!
Long lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems, water & sewer systems, dams, & lighting systems.
Whatever the government elects to do, it must be disclosed in the notes
Not required to capitalize if all 3 criteria met
Serial number, etc.
Date of acquisition
Name and address of vendor
Payment voucher number
Fund and account from which purchased
Federal financing, if any
Cost or estimated cost
Estimated useful life & salvage value and annual depreciation
Department charged with custody
Date, method, and authorization of disposalMinimum Information forProperty Records
Unexpected (not normal, not ordinary)
Decline in the service utility of a capital asset
Events or changes in circumstances that might be expected to occur during useful life
CA accounted for using the modified approach
Declines caused by deferred maintenanceImpairment of Assets
Amount of impairment is derived from the estimated costs to restore the utility of the capital asset. The estimated restoration cost can be converted to historical cost either by restating the estimated restoration cost using an appropriate cost index or by applying a ratio of estimated restoration cost over estimated replacement cost to the carrying value of the capital asset.
Isolates the historical cost of the service utility of the capital asset that cannot be used due to the impairment event or change in circumstances. The amount of impairment is determined by evaluating the service provided by the capital asset—either maximum estimated service units or total estimated service units throughout the life of the capital asset—before and after the event or change in circumstance.
Replicates the historical cost of the service produced. A current cost for a capital asset to replace the current level of service is estimated. This estimated current cost is depreciated to reflect the fact that the capital asset is not new, and then is deflated to convert it to historical cost dollars.
All unmatured long-term debt of the government except for that accounted for in a Proprietary Fund or Trust Fund
Bonds, warrants, & notes
Capital leases and CoPs
Underfunded pension plan contributions
Claims & judgments
Landfill closure and post-closure care costsGeneral Long-Term Liabilities