Week 2 DQs
What is meant by an in-substance defeasance, and how can a government use it to lower its interest costs? How must it recognize a gain or loss on defeasance if it accounts for the debt in a proprietary fund? How do the GASB standards pertaining to in-substance defeasances differ from those of the FASB?
In-substance defeasance is the place where the government has set aside funds or assets which equal a loan amount payable. This simply means it is not required to come up with funds when a payment is payable. The government may find out the sum required right now having current value, this lets it to get the complete balance due when payments are payable at absolutely no additional cost. Additionally this financial debt is no more recorded like a debt since the...
Excerpt from file: Week2DQs DQ1 Whatismeantbyaninsubstancedefeasance,andhowcanagovernmentuseit toloweritsinterestcosts? Howmustitrecognizeagainorlossondefeasanceifitaccountsforthedebtina proprietaryfund? HowdotheGASBstandardspertainingtoinsubstancedefeasancesdifferfrom thoseoftheFASB?
Filesize: < 2 MB
Print Length: 4 Pages/Slides
Surround your text in
**bold**, to write a math equation use, for example,