Introduction
The intent of this chapter is to examine how long term items are handled in state and local governmental accounting and financial reporting. The focus is on long term obligations and long term fixed assets. In the prevailing compliance and liquidity model of government, long term items are treated differently than short term items. Records are kept for long term items but these items do not affect financial statement performance unless and until cash is involved. For example, fixed assets are listed but not depreciated and bonds payable are listed but do not count as a liability in the balance sheets of governmental funds. The prior chapter, chatper 3, centered mainly on short time items which are at the core of the compliance and liquidity model. Topics in the chapter will include acquisition and funding of property, plant and equipment, pensions and other deferred compensation, and investing. Time value of money will play an important role since these topics often cover periods well beyond a year's period of time.
Pretest
Lessons
Discussion
Study Aids
Post-Test
