Question:
Assessing the Impact of the Proposed Lease Standards
For this assignment, you are the CFO for a large county government that is a party to many lease agreements as a lessee, totaling more than $100 million dollars in annual lease payments. (We will assume for simplicity's sake that the county is not a lessor.) All of these lease agreements have more than a year left but have been structured in such a manner that they do not meet any of the criteria that would require them to be reported as capital leases under the existing standards. Therefore, no capital lease obligations payable are recognized as long-term liabilities.
You have just read the GASB Statement 87, Leases, and you realize the new standards could have a very significant impact on the county's financial statements and, therefore, on the county's reported financial health. This is something you need to bring to the attention of the County Executive, the county's chief elected official (but she's not an accountant!).
First, based on your reading of the new lease requirements, you will analyze how implementing the standards would affect the amounts reported in the county's financial statements.
Part 1
The following information is from the county's financial statements for the fiscal year ending December 31, 2020, for the primary government (in thousands of dollars):
Total assets $5,519,445
Capital assets, net 3,579,073
Total deferred outflows 9,622
Total liabilities 2,078,490
Long-term liabilities 1,536,126
Outstanding bonds and notes 1,256,754
Total deferred inflows of resources 17,334
Net position:
Net investment in capital assets: 2,671,433
Restricted 541,865
Unrestricted 219,945
Total net position 3,433,243
Total expenses 3,516,728
Interest expenses - leases 38,574
Total revenues 3,598,824
Lease expenditures 115,892
Other relevant information includes (in thousands of dollars):
Present value of all future lease payments in effect as of 12-31-20- $317,645
Taxable assessed value of property- 44,514,992
State law limits the amount of outstanding debt (including capital leases) that a county may have to 3% of taxable assessed value of property.
Graded Assignment: Determine what amounts in the county's financial statements would change if the proposed standards had been in effect as of 12-31-20, and what the new amounts would be. Be sure to show your relevant work.
you are producing an Organization Chart for a CM Contract, in your organizational arrangements; how would you explain the following? 1. With whom would the Owner have Privity of Contract with? (5) 2. With whom would the AE/Consultant have Privity of Contract with? (3) 3. With whom would the Sub-Consultant have Privity of Contract with? (3 4. With whom would the Contractor have Privity of Contract with? 5. With whom would the Sub-Contractor have Privity of Contract with? 6. With whom would the Supplier/Vendor have Privity of Contracts with? What does the CM do in the CM Contract? In fact, what are his her responsibilities? For the toolbar, press ALT F10 (PC] or ALT + FN F10 [Mac).Guidance to the Debt Manager and Transparency to Stakeholders The debt management strategy (DMS) guides the government's financing choices, set out in the annual borrowing plan (ABP); and for all but the poorest or most fragile countries, a key component of the ABP will be the issuance of domestic securities. The targets of the DMS for the main portfolio risk indicators are an important guide to developing the issuance plan, i.e. the mix, size, and timing of the securities to be issued to meet the gross borrowing requirement implied by the annual budget. Conversely, market constraints on the design of the issuance plan will inform the periodic review and update of the DMS. The debt manager as issuer of government securities must therefore juggle many variables: Objectives for the liability portfolio as expressed in the DMS; . The need to meet the government's financing requirement, taking account also of its profile across the year; The trade-offs between cost and risk implied by different instrument choices interacting with the trade-off expressed in the DMS; The structure of demand, and investors' preferences as evidenced by the yield curve; and The importance of developing the domestic market. Central to these decisions is building liquidity in government securities. The issuer benefits from greater investor demand and potential cost-savings. Investors benefit from reduced risk, and the ability to build a portfolio with the desired cost-risk characteristics. The wider market benefits from the great transparency of prices and yields, and the associated yield curve that is essential to pricing and the hedging of market risk. Developing Secondary Market Liquidity Building liquidity has often proved a challenge. Many domestic government debt markets in EMEs have grown impressively; but performance in the primary market has greatly outstripped that in the secondary market, which has often remained illiquid, with low turnover and little price transparency. Liquidity often suffers from a narrow range of investors and too many small (and therefore illiquid) bonds, which fragment the market. Even where the government is able to issue long-maturity bonds, they are often held by long- term saving institutions that are interested only in holding the bond to maturity to matchAccording to China's Company law, who of the following persons could be eligible for appointment as a director, supervisor or senior manager of a company? A. A person who has been convicted crime of corruption B. A physical disabled person who has full civil capacity C. A former director of a company which has been declared bankrupt where he was personally responsible for the bankruptcy D. A person who has significant unpaid debts. pen Snarllo ads agist of H 8. Which of the following FIE forms is not a legal person? A. CJV B.EJV may face C. Branch office D.IHC how of villion ed meet viewing aved of bermilos ed or carolina witt 9. According to China's company law, a company may not purchase its own shares in which of the following circumstances. A. to reduce the registered capital B. to merge with another company that holds its shares C. to reward the staff of the company with shares D. to escape some tax Page 2 7 pages in totalEnter Shift Caps 4. A sole proprietor can be liable to a customer either directly (by his own actions) or 3 1735 068 505 258 vicariously through the actions of an employee. (A) Provide a factual situation that would give rise to an owner's direct actions under the fort called negligence Ctri (B) Provide a factual situation that would give rise to vicarious liability under a negligence theory. (C) Provide a factual situation that would give rise to vicarious liability for an intentional tort, 10 Points
