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Government Accounting Standards Case




Question;Government Accounting Standards Case;The City;of James has $10 million of 10% bonds payable in its financial statements.;These bonds contain a call provision. The Agent Company told the City that it;will help find parties to call back the old bond and refinance the bonds with;7% interest payments. The new bonds will not change the original redemption;dates from the old bonds. However, Agent;Company demands a $100,000 service charge for its role in these transactions.;While the City Council recognizes the benefits of the proposed services, the;City is unsure how to disclose such payments when the transactions are;completed. Thus, City asks its;accountants for guidance.;-Use;GARS.;-Wiley;has GARS secondary source.;-How to;disclose.;-What;are city requirements for disclosure as a government.;-Debt refinancing.;-Call bond disclosures.;-debt refunding;-Broker, agent.;-How to disclose such payments and the relationship with the;broker?;-GASB 53.


Paper#49343 | Written in 18-Jul-2015

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