Chapter 6 - General LTL & DSF Flashcards
LTL within a prop or fid fund do what?
They are reported separately unless they have a general obligation backing.
Then it’s reported as a contingent liability
LTL within a prop or fid fund do what?
They are reported separately unless they have a general obligation backing.
Then it’s reported as a contingent liability
General LTL
Where are LTL reported at?
They’re reported in the gov activities of the gov wide STATEMENT OF NET ASSETS
What’s Direct Debt ?
This the debt a gov issues to pay for things that they need to repay in full
What’s Overlapping Debt?
The ratio a specific district needs to pay for their share of project’s debt
What’s Debt limit?
The maximum a gov can borrow or issue to finance its current obligations
Debt Margin: The difference between current and max debt
What type of disclosures are needed with Debt?
- Schedules of debt / future obligations
- Debt limit, margin, and overlapping
What’s a serial bond?
What’s a deferred serial bond?
What’s an advantage of a serial bond?
They’re self amortizing, so no sinking fund needed!
Because you don’t need to pay interest, instead you slowly pay back the principal
What’s a term bond?
What’s a debt service fund?
What’s a DSF limitation?
GASB recommends only one fund
DSF and Term Bonds Accounting
DSF and Term Bonds Accounting
Summary of DSF
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General LTL
Where are LTL reported at?
They’re reported in the gov activities of the gov wide STATEMENT OF NET ASSETS
What’s Direct Debt ?
This the debt a gov issues to pay for things that they need to repay in full
What’s Overlapping Debt?
The ratio a specific district needs to pay for their share of project’s debt
What’s Debt limit?
The maximum a gov can borrow or issue to finance its current obligations
Debt Margin: The difference between current and max debt
What type of disclosures are needed with Debt?
- Schedules of debt / future obligations
- Debt limit, margin, and overlapping
What’s a serial bond?
