ABSTRACT
State and local governments borrow money for many different reasons (to purchase or build capital assets, to construct or improve infrastructure, to pay claims or judgments, to finance current operations, etc.) and in many different forms (leases, loans, notes, warrants, and bonds). The fund category and duration of these governmental borrowings is most important because governments use two different models to focus on what is being measured by the accounting information. In governmental-type funds, the focus is on current financial resources and short-term fiscal accountability. For proprietary and fiduciary-type funds, the focus is on economic resources and long-term operational accountability. This means that governmental-type funds contain only short-term (current) accounts, while proprietary
Contents 6.1 Types of Debt Instruments .......................................................................194 6.2 Expenditure Recognition .........................................................................195 6.3 Accounting for Debt Service Fund Transactions ......................................196 6.4 Reporting for Debt Service Funds ............................................................202 6.5 Special Assessments ..................................................................................203 6.6 Reporting for Special Assessment Debt Service Funds ............................ 208 6.7 Extinguishment of Debt .......................................................................... 208 6.8 Accounting for and Reporting of Debt Refundings ................................. 211 6.9 Disclosure Requirements ..........................................................................212 6.10 Concluding Comments ............................................................................213 Endnotes ...........................................................................................................213
