Questions from Accounting for Government and Non-Profit

Q: What are deferred maintenance costs, and when and how must a

What are deferred maintenance costs, and when and how must a government report them (as they relate to infrastructure) in its financial statements?

Q: Per the provisions of Statement No. 34, governments must report

Per the provisions of Statement No. 34, governments must report their capital assets similar to businesses in their government-wide statements. Yet the information provided is still inadequate to faci...

Q: What are the differences between market risk, credit risk, and

What are the differences between market risk, credit risk, and legal risk? Suppose that a local government invests in 20-year U.S. government bonds. Assess each of the three risks, and discuss the dis...

Q: What are derivatives? Why can they be especially high-risk

What are derivatives? Why can they be especially high-risk securities?

Q: How can governments use derivatives as a means of reducing investment or

How can governments use derivatives as a means of reducing investment or borrowing risks?

Q: What are the advantages of “monetizing” the value of human

What are the advantages of “monetizing” the value of human lives (often said to be “priceless”) in assessing the costs and benefits of a proposed project or activity? What is the most widely used basi...

Q: The GASB establishes a hierarchy of inputs to determine the fair values

The GASB establishes a hierarchy of inputs to determine the fair values of investments. What are the three levels of the hierarchy?

Q: Per the GASB, held-to-maturity securities, such

Per the GASB, held-to-maturity securities, such as bonds, must be reported at fair value, even if they will be eventually redeemed at stated or face value. Thus gains and losses on changes in fair val...

Q: A state acquired a large parcel of forest land, which at

A state acquired a large parcel of forest land, which at some time in the future, it expects to license to timber companies so that they can harvest and sell the trees. For now, however, the land is u...

Q: A city maintains botanical gardens that contain valuable plants. Should these

A city maintains botanical gardens that contain valuable plants. Should these plants be considered “collectibles,” such as museum pieces, or infrastructure, such as parks?