Archive for February, 2009

The second type of financing that may or may not be recorded as a liability of a governmental fund, usually the capital projects fund, depending on whether certain conditions are met, are demand bonds. Demand bonds are financial instruments that create a potential call on a government’s current financial resources.
Demand bonds are a type of debt that has demand provisions (sometimes called put provisions) as one of the features that give the bondholder the right to require the government issuer to redeem the bond within a (more…)

There are several ways to change your home interior to be more warm and lovely. You can repaint your wall with natural color such as brown or olive green, you can use curtain with soft color, or you can simply place area rugs to make your floor look more gorgeous. You can use interior magazine as the reference to create your own interior design. (more…)

Bond anticipation notes are short-term notes that are expected to be repaid with the proceeds of long-term debt issued after the bond anticipation notes are issued. The accounting question arises as to whether (1) the bond anticipation notes should be considered a short-term liability and recorded in the fund that receives the proceeds from these notes (usually the capital projects fund) or, (2) since they are expected to be repaid using the proceeds from a long-term debt issuance, they should be treated as a long-term liability. Treating them as a long-term liability means that they would not be recorded in the fund, but (more…)

The number of categories and types of revenues and “other financing sources” that are typically found in capital projects funds are usually fewer that those found in the general and special revenue funds. Since governments typically finance major acquisitions and construction of capital assets through the use of long-term debt, the issuance of long-term debt is typically the most important source of resources for capital projects funds. Proceeds from long-term debt are reported as an “other financing source” of (more…)

Sauna treatments nowadays is likely to be most popular way as useful health treatment center for all people in United States. You can just sit down and relax to get lots of comfortable health treatments for all parts of your body. But, have you ever had the new sauna treatments that can give you with much more features for your health? (more…)

Governments often use capital projects funds to account for and report major capital acquisition and construction activities. The capital projects fund does not account for the capital activities of proprietary funds—those activities are accounted for within the proprietary funds. The capital projects funds would account only for the capital activities of those projects that are considered to be governmental, rather than proprietary. (more…)

Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to be expended for specific purposes. The creation and use of special revenue funds is optional unless there is a legal requirement of the government that a special revenue fund be created. In other words, simply restricting the use of the revenue does not automatically mean that this revenue and the related expenditures must be accounted for in a special revenue fund. In the absence of a legal requirement to (more…)

These exceptions are discussed in the related chapters of this book dealing with these types of issues (either in Chapter 9, or the debt service fund discussion below, leases, etc.). These exceptions arise because governmental funds, such as the general fund, record expenditures when a liability is incurred, but only record the liability for the fund when the liability will be liquidated with expendable available financial resources. As a quick example, most governments have large liabilities that they will owe to employees on termination or retirement for unused vacation and sick leave time (compensated absences). This liability will (more…)

The typical liabilities found in the general fund are those for accounts payable and accrued expenditures, deferred revenues, and revenue or tax anticipation notes. Deferred revenues are discussed in Chapter 6 on nonexchange transactions.

The general fund accounts for accounts payable and accrued expenditures in conjunction with its accounting for expenditures. The expenditure is generally recorded in the fund when a liability is incurred. (more…)

A few words are needed on the accounting for inventories in the general fund. These accounting rules would also apply to other governmental funds discussed in this section of the chapter, but inventories are most often found in the general fund. (more…)