Accounting for General Capital Assets and Capital Projects

Chapter

5

Accounting for General Capital Assets and Capital Projects

McGraw-Hill/Irwin

Copyright ? 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives

After studying this chapter, 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

5-2

Learning Objectives (Cont'd)

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 and accounting procedures for

special assessment capital projects

5-3

What are General Capital Assets?

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

5-4

Typical Classifications of General Capital Assets

Land Buildings Improvements Other than Buildings Machinery and Equipment Construction Work in Progress Infrastructure (e.g., roads, streets, bridges) Intangibles (e.g., patents, easements, water

rights)

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