This is individual assignment for the course of accounting for public relations Course title Accounting for public relations.

1. 1What are General Capital assets? How are they reported?
General capital assets are those assets acquired with the resources of governmental
funds.
How are they reported?
They are reported as assets in the Governmental Activities column of the government-
wide financial statements at historical cost. Those capital assets identified as
depreciable are shown net of accumulated depreciation
General capital assets are: Capitalized in the governmental activities accounts at the
government-wide level. General Capital Asset is a leading real estate firm focused on building
a portfolio of exceptional projects in established urban and suburban neighborhoods
general capital assets are the capital assets purchased by the governmental fund and are
not specifically related to activities in proprietary or fiduciary funds.
Examples of general capital assets?
land, improvements to land, easements, buildings, building improvements, vehicles,
machinery, equipment, works of art and historical treasures, infrastructure, and all other
tangible or intangible assets that are used in operations and that have initial useful lives
extending beyond a single reporting period
It includes assets such as land, some land improvements, certain infrastructure, and
construction in progress. If the value of a group of non-depreciable capital assets is significant,
the government should report these separately in the statement of net position.
How are they reported?
All general capital assets, except infrastructure assets, should be reported in that
column
2 Explain what disclosures the IPSAS requires for capital asset in the notes to financial
statements
The IPSAS focus on consolidated financial statements which present financial information about all
the assets, liabilities, revenues, expenses, and cash flows
Notes to financial statements
Notes to the financial statements disclose the detailed assumptions made by accountants when
preparing a company's: income statement, balance sheet, statement of changes of
financial position or statement of retained earnings.
Disclosures come at the end of a financial statement, sharing non-financial information to
provide context for the financials. This information helps investors, lenders, and others make
the best possible decisions.

2. Five lists the items to be disclosed, including
1 taxes,
2 depreciation,
3 interest income an
4 unusual charges and credits,
5 net profit or loss.
3 The d/ce between using the modified approach to accounting for infrastructure asset
depreciating infrastructure?
Under the modified approach, infrastructure is treated as an inexhaustible capital asset,
thereby eliminating the need for depreciation accounting. Infrastructure capital assets
accounted for under the Modified Approach will be managed using an acceptable Asset Management
Depreciation infrastructure is held to represent the reduction in the service value
of the asset. If the asset is maintained (through continuous component replacement)
such as to preserve the service value of the asset into the foreseeable future, then one
could argue that infrastructure assets do not depreciate System. Infrastructure assets are
depreciated consistently with all other depreciable capital assets. In this approach,
infrastructure assets are listed under depreciable capital assets.
4 how does one determine whether a particular lease is a capital lease or an operating
lease?
An operating lease is treated like renting -- payments are considered operational
expenses and the asset being leased stays off the balance sheet.
capital lease is more like a loan; the asset is treated as being owned by the lessee so it stays
on the balance sheet
capital lease is considered a purchase of an asset, while an operating lease is handled as a true lease
 what entries are required in the general journal of a governmental fund and governmental activities
under generally accepted accounting
Journal Entries- Fund Based vs. Government-Wide ;
Capital Projects Fund. Governmental Activities
5 what is the purpose of a capital project fund
The purpose of a capital projects fund is to account for the financial resources to be used
for the acquisition, construction or improvement of major capital assets other than those
acquired through proprietary or fiduciary funds.

3. Capital projects funds are used to account for financial resources used for the acquisition or
construction of capital facilities. These include land, improvements to land, buildings and
building improvements and infrastructure
The most common examples of capital projects are infrastructure projects such as railways,
roads, and dams. In addition, these projects include assets such as subways, pipelines,
refineries, power plants, land, and buildings. Capital projects are also common in corporations.
6 If a capital project is incomplete at the end of a fiscal year, why is it considered
desirable to close encumbrances and all operating statement accounts at year end?
Encumbrance is an incomplete account since the budget of the project has not been fully utilized.Sop the
account will be closed at the year end for auditing .. An encumbrance is a restriction placed on the use
of funds. The concept is most commonly used in governmental accounting, where
encumbrances are used to ensure that there will be sufficient cash available to pay for specific
obligations
Why is it desirable to re establish the encumbrances accounts as of the first day of the following
year?
Encumbrances can be re-established for multi-year contracts, where not all budget is available/received in
the first year. For multi-year contracts
7 which expenditures of a capital projects fund should be capitalized to construction
work in progress?
 A construction work-in-progress asset is any asset that is not currently usable, such as
assets that are undergoing testing or that a company is building. Depending on the project's
size, construction work-in-progress accounts can be some of the largest fixed asset accounts in
a business's books
 Construction in Progress (CIP)
For construction in progress assets, no depreciation is recorded until the asset is placed in
service. When construction is completed, the asset should be reclassified as building, building
improvement, or land improvement and should be capitalized and depreciated.
Capitalization of Costs
 Original contract or purchase price.
 Brokers' commissions.
 Closing fees, such as title search, and legal fees.
 Real estate surveys.
 Grading, filling, draining, clearing.
 Demolition costs (e.g., razing of an old building)
Assumption of liens or mortgage

4. The Capital Work in Progress, also known in short as CWIP, is one of the important part of
the non-current asset of an entity. CWIP includes building under construction, machinery
under assembly etc., at the time of preparation of balance sheet.
Is construction work in progress included in the chart of accounts of a capital projects fund? If
not ,where would it be found?
yes
Construction Work-in-Progress is often reported as the last line within the balance sheet
classification Property, Plant and Equipment
For construction in progress assets, no depreciation is recorded until the asset is placed in
service. When construction is completed, the asset should be reclassified as building, building
improvement, or land improvement and should be capitalized and depreciated
8 describe the nature and characteristics of general capital asset
 The nature of general capital asset
A) Any kind of property held by an assessee,
whether or not connected with business or profession of the assessee.
B) Any securities held by a FII which has invested in such securities in accordance with the
regulations made under the SEBI
C) to the specific mix of debt and equity used to finance a company's assets and
operations
 characteristics of general capital asset
 It has an expected useful life of more than one year.
 Its acquisition cost exceeds a company-designated minimum amount, known as the
capitalization limit.
 It is not expected to be sold as a normal part of business operations, as would be the
case for inventory
9 how to account general capital asset assets including:
acquisition.maintainance,depreciation ,impairment and disposition?
Deflated depreciated replacement cost approach. Use for impairment due to change in the manner or duration
of use. Measurement of Asset Impairments . The amount of impairment is determined by evaluating
the service provided by the capital asset—either maximum estimated service units or total
estimated service ..
The journal entry to record an impairment is a debit to a loss, or expense, account and a
credit to the related asset.
You can calculate straight-line depreciation using the following formula:
1. Straight-Line Depreciation = (Asset Cost – Residual Value) / Useful Life.
2. Per-Unit Depreciation = (Asset Cost – Residual Value) / Useful Life in Units of Production.
3. Total Depreciation = Per-Unit Depreciation x Units Produced.

5. 10 explain the purpose characteristics and typical financing sources of a capital
projects fund
Purpose
to account for financial resources used for the acquisition or construction of capital
facilities. improvements to land, buildings and building improvements and infrastructure.
Source
. Typical source of financing includes: Long term debt issue proceeds. Grants from other
governmental units.
11 take an example and prepare journal entries for a typical capital project both at the fund level
and within the governmental activities category at the government wide level
Purchased office equipment for the Ballo office and paid $ 50,000 cash from the general fund
General fund : dr cr
Expenditures 50,000
Cash 50,000
Governmental activities
Equipment 50,000
Cash 50,000
12 prepare financial statements for capital projects fund
The FFS report more detailed information about the primary government. These
statements present information about major funds individually and about non-major
funds in the aggregate for governmental and proprietary fund types
Abdi company
Trial balance recording new transaction
Account debit credit
Cash ***
Account receivable **
Inventory **
Insurance payable **
Account paable **
Note payable **
Capital stock **
Retained earning **
Sales of merchandise **
Cgs **
Rent expense **
Salary **
Insance expense **
Totals **
13 explain the concepts and accounting procedures for special assessment capital project

6. he accounting for costs to arrange financing for the construction of a new capital project is
specifically addressed by ASC 835, Interest. Accounting for Capital Project Fund Financial
activities such as revenues earned and expenditures incurred for the construction or acquisition
of capital .
In fund financial statements, the modified accrual or accrual basis of accounting, as
appropriate, should be used in measuring financial position and operating results.
modified accrual basis of accounting
Capital project funds focus on sources and uses of available, spendable resources and use the modified
accrual basis of accounting.