Final answer:
In governmental accounting, net position is the residual interest in a government's assets after liabilities are deducted, and are typically categorized as restricted, net investment in capital assets, and unrestricted. There are no standard categories named 'temporary,' 'current,' or 'contingent' net position in government-wide financial reporting.
Step-by-step explanation:
The categories of net position for government-wide and proprietary funds financial statements are used in governmental accounting and represent the residual interest in the assets of a government, after liabilities are deducted. These categories are typically broken down into:
- Restricted net position: These are net position amounts that are constrained for specific purposes by external parties, constitutional provisions, or enabling legislation.
- Net investment in capital assets: This part of net position shows the government's investment in capital assets such as land, buildings, and infrastructure, reduced by related outstanding debt that was used to acquire those assets.
- Unrestricted net position: These are net position amounts that are not restricted by external parties or laws and can be used by the government for any purpose within its legal authority.
There is no standard category such as 'temporary net position,' 'current net position,' or 'contingent net position' in government-wide financial reporting. It is possible that these terms are being confused with temporary restrictions on fund balances, current financial resources in governmental funds, or contingent liabilities, but they do not represent standard categories of net position.