Capital Assets Account Assignment Paper
Order ID 53003233773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Capital Assets Account Assignment Paper
Comment No.1 to N Z
According to GASB (1999), capital assets accounted as follows:
– Capital assets should be reported at historical cost;
– Donated capital assets should be reported at their estimated fair value at the time of acquisition plus ancillary charges if any;
– Capital assets that are being or have been depreciated should be reported net of accumulated depreciation in the statement of net assets;
– Capital assets that are not being depreciated, such as land or infrastructure assets reported using the modified approach should be reported separately if the government has a significant amount of these assets (pp. 9-11).
In governmental activities, capital assets include general capital assets and proprietary capital assets. “Capital assets used in providing services that are funded primarily by user fees rather than general tax dollars are not classified as general capital assets but rather as proprietary capital assets which have always been capitalized and depreciated” (Robbins & Baldwin, 2002, para. 5).
The FASB does not have specific requirements on how to display of capital assets. Nongovernmental not-for-profit’s capital assets are considered as a part of unrestricted net assets. “In addition to these differences, the governmental not-for-profit presents a classified statement of net assets whereas the nongovernmental not-for-profit presents a statement in liquidity order” (Marsh & Fischer, 2011, para. 45). In the accounting perspective, if not-for-profits receive a donation of assets that will be used in the course of business, the transaction will be recorded as a debit to the asset account and a credit to the organization’s income account. In this case, those capital assets need to be depreciated accordingly.
Comment #2 NZ
The leases for the government are regulated by Statement No. 87, Leases. GASB Statement No. 87 provides guidance for lease contracts for nonfinancial assets such as vehicles, heavy equipment, and buildings – but excludes nonexchange transactions, including donated assets, and leases of intangible assets (such as patent and software licenses) (GASB, 2017, para. 2).
On June 28, 2017, the GASB issued its long-awaited revision to governmental lease accounting. Lessees and lessors alike will see significant changes (PWC, 2017, para. 1).
Under a new statement, a lessee government – which pays to use another entity’s capital asset – is required to recognize a lease liability and an intangible asset representing the lessee’s right to use the leased asset, a lessor government – one that leases its capital assets to others – must now recognize a lease receivable and a deferred inflow of resources (Wolfe, 2017, para. 6-7).
According to changes, a lessee will report in financial statements:
– Amortization expense for using the lease asset, which is similar to depreciation, over the shorter of the term of the lease or the useful life of the underlying asset,
– Interest expense on the lease liability,
– Note disclosures about the lease, including a general description of the leasing arrangement, the amount of lease assets recognized, and a schedule of future lease payments to be made (Wolfe, 2017, para. 8).
Also, a lessor will report the following in its financial statements:
– Lease revenue systematically recognized over the term of the lease, corresponding with the reduction of the deferred inflow,
– Interest revenue on the receivable,
– Note disclosures about the lease, including a general description of the leasing arrangement and the total amount of inflows of resources recognized from leases (Wolfe, 2017, para. 9).
Capital Assets Account Assignment Paper
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
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