Capital assets and long-term liabilities

BAR Chapter 25 · Area III · Blueprint III.C.3–4

Roads, buildings and fire engines are most of what a city owns; bonds, leases, pensions and retiree health promises are most of what it owes. The Blueprint asks you to identify the capital assets and long-term liabilities in the government-wide statements, calculate net capital assets and journal entries (including leases), compute total indebtedness and net general long-term debt, and recall how net pension and OPEB liabilities are measured. Leo works through Riverton's asset register and debt schedule with Dana.

In this chapter

What a capital asset costs
Depreciation and the modified approach
Leases and subscription arrangements
General long-term debt and total indebtedness
The net pension liability
Other postemployment benefits

This chapter has 6 lessons, 50 practice MCQs with explanations and 13 simulations, plus flashcards and a recall sheet.

What this chapter covers

Capital and infrastructure assets
general long-term debt
net pension and OPEB liabilities

Chapter 24: Net position and fund balances · Chapter 26: Interfund activity, nonexchange revenue and expenditures