Question

Conduit Debt: GASB states - note disclosure is not sufficient in G/W. Some governments have to include in G/W. True or False?

Answer 1

The statement here is False.

Step-by-step explanation:

GASB, the Governmental Accounting Standards Board, provides standards for financial reporting for state and local governments in the United States. Regarding conduit debt, GASB 88 addresses the accounting and financial reporting for certain conduit debt obligations.

Conduit debt typically involves a government issuing debt on behalf of a third party, and GASB 88 establishes criteria to determine whether the debt should be recognized and reported in the government-wide financial statements. In cases where the government is not obligated to repay the debt, GASB generally requires note disclosure rather than inclusion in the government-wide financial statements.

It's important to carefully review the specific details and circumstances surrounding conduit debt to determine the appropriate accounting treatment. However, as a general rule, GASB emphasizes the importance of note disclosure when the government is not obligated for the repayment of the debt.