Accounting for Debt-Funded Capital Assets
Course Overview
For a typical state and local government, the large dollar investment usually associated with acquiring or constructing capital assets often necessitates the issuance of long-term debt. This course will take an example of capital construction funded with long-term debt and walk through the required journal entries for recording activity associated with the constructed capital asset and its related debt issuance. An Excel workbook file is also provided as a companion to the course which includes all of the journal entries.
Who will Benefit
Accounting and financial reporting professionals with a basic knowledge of governmental accounting and desiring an understanding of the proper recording for capital asset and debt activity.
Learning Objectives
- Identify the key differences between reporting for capital assets and debt in governmental funds and governmental activities.
- Determine the appropriate valuation for reporting capital assets, and their proper depreciation or amortization.
- Prepare the required journal entries for the acquisition, funding, and sale of capital assets.