Cheatography
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General Long Term Liabilities & Debt Service
This is a draft cheat sheet. It is a work in progress and is not finished yet.
General Long Term Liabilities
Debt & other long-term liabilities that arise from activities of governmental funds |
Issuance of bonds and notes, and capital leases |
Long-term liabilities related to operating activities |
Claims and judgements, compensated absences, pensions, and other postemployment benefits, and obligations related to landfills and pollution remediation. |
Pollution Remediation Obligations |
Liabilities arising from clean-up of hazardous waste or hazardous substances resulting from existing pollution |
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Debt Service Funds
Fund that accounts for financial resources set aside for payment of principal and interest on general long term liabilities |
Resources may come from taxes (either levied by DSF or levied by GF then transfered to DSF), special assessments, or other revenues |
Usually only have one DSF for all tax supported debt, but if there are legal restrictions then there may be more |
Types of Tax-Supported Bonds
Serial Bonds |
Term Bonds |
Principal matures in annual installments |
Principal matures in lump sum amount at the end of the bond term |
Resources raised each year approximate debt service requirements |
Not used as frequently as serial bonds because they usually require a sinking fund and the accounting is more complex |
Accounting for Debt Service Funds
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