Question
In order to comply with GASB standards, there are certain disclosures about capital assets that must be included in the basic financial statements. These disclosures
In order to comply with GASB standards, there are certain disclosures about capital assets that must be included in the basic financial statements. These disclosures are divided in order to distinguish between general capital assets and those that are reported in business-like activities. Some of the mandated disclosures for capital assets are:
1) Beginning of year and end of year balances showing accumulated depreciation as well as historical cost.
2) Capital Acquisitions during the year
3) Sales or other dispositions
4) Depreciation expense for the current period.
It is extremely important in my opinion for these governmental entities to have a very strict set of disclosures they must include in their financial statements. This can assure the public of the government's books and operations. Does anyone agree or disagree that governmental entities should be held to a more strict set of disclosures?
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