Question

1. Are capital assets reported as a line-item in the government-wide statement of net position? Are nondepreciable capital assets reported on a separate line from depreciable capital assets, or are they separately reported in the notes to the financial statements? Does the disclosure show beginning balances, increases and decreases, and ending balances for each major class of capital assets, as well as the same information for accumulated depreciation for each major class? Are these disclosures presented separately for the capital assets of governmental activities, business-type activities, and discretely presented component units? Do the notes specify capitalization thresholds for all capital assets, including infrastructure? Do the notes show the amounts of depreciation expense assigned to each major function or program for governmental activities at the government-wide level? Are the depreciation policies and estimated lives of major classes of depreciable assets disclosed? Do the notes include the entity's policies regarding capitalization of collections of works of art and historical treasures? If collections are capitalized, are they depreciated? Are accounting policies disclosed for assets acquired under capital leases?

Answer 1

Capital assets are reported as a line-item in the government-wide statement of net position. Non-depreciable capital assets are separately reported in the notes to the financial statements. The disclosure shows beginning balances, increases and decreases, and ending balances for each major class of capital assets, as well as the same information for accumulated depreciation for each major class. These disclosures are presented separately for the capital assets of governmental activities, business type activities, and discreetly presented component units. The notes specify capitalization thresholds for all capital assets, including infrastructure. The notes show the amounts of depreciation expense assigned to each major function or program for governmental activities at the government-wide level. The depreciation policies and estimated lives of major classes of depreciable assets are disclosed. Notes do disclose the policies regarding capitalization of collection of arts and historical treasures if any. These cllectibles are not depreciated but market value of these art work is assessed to compute gain/ loss at the year end. Accouting policies for assets acquired under capita lease are clearly specified