Chapter 5 - Accounting for general capital assets and capital projects. After studying Chapter 5, you should be able to: Describe the nature and characteristics of general capital assets; account for general capital assets, including: acquisition, maintenance, depreciation, impairment, and disposition; explain the purpose, characteristics, and typical financing sources of a capital projects fund; | Chapter 5 Accounting for General Capital Assets and Capital Projects McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives After studying Chapter 5, you should be able to: Describe the nature and characteristics of general capital assets Account for general capital assets, including: acquisition, maintenance, depreciation, impairment, and disposition Explain the purpose, characteristics, and typical financing sources of a capital projects fund 1 Learning Objectives (Cont’d) After studying Chapter 5, you should be able to: Prepare journal entries for a typical capital project, both at the fund level and within the governmental activities category at the government-wide level Prepare financial statements for capital projects funds Explain the concepts underlying special assessment capital projects 1 Long-lived assets used by activities reported in governmental funds Distinguished from capital assets that are . | Chapter 5 Accounting for General Capital Assets and Capital Projects McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives After studying Chapter 5, you should be able to: Describe the nature and characteristics of general capital assets Account for general capital assets, including: acquisition, maintenance, depreciation, impairment, and disposition Explain the purpose, characteristics, and typical financing sources of a capital projects fund 1 Learning Objectives (Cont’d) After studying Chapter 5, you should be able to: Prepare journal entries for a typical capital project, both at the fund level and within the governmental activities category at the government-wide level Prepare financial statements for capital projects funds Explain the concepts underlying special assessment capital projects 1 Long-lived assets used by activities reported in governmental funds Distinguished from capital assets that are specifically associated with activities reported in proprietary and fiduciary funds What are General Capital Assets? 4 3 Land Buildings Improvements Other than Buildings Machinery and Equipment Construction Work in Progress Infrastructure (., roads, streets, bridges) Intangibles (., patents, easements, water rights) Typical Classifications of General Capital Assets 4 3 Tax-supported bonds Grants from other governmental units (., federal or state grants) Transfers from other funds Gifts from individuals or organizations Special assessment bonds or taxes Capital leases Typical Financing Sources for General Capital Assets 5 3 Acquiring Capital Assets General capital assets are acquired from expenditures of: The General Fund Special revenue funds Capital project funds Note: If money received from governments, individuals, or organizations is restricted for the purchase or construction of high cost capital assets, it is recommended that a capital projects fund be used .
