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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Capital Assets Held for Sale

GASB 104 – Disclosure of Certain Capital Assets requires an annual review of capital assets that are likely to be sold within one year of the financial statement date. If there are such capital assets, a note disclosure is required. The note disclosure is part of Note 2 – Capital Assets and is entered in the CANSS web application.

A capital asset is held for sale if:

  • The agency decided to sell the asset
    –AND–
  • It is probable that the sale will be finalized within one year of the financial statement date (Aug. 31, 20CY).

In evaluating if it is probable that a sale will be finalized within one year, consider:

  • If the asset is available for immediate sale in its present condition.
  • If an active program to locate a buyer was initiated, which may include the asset being put out for bid.
  • The market conditions for selling that type of asset.
  •  The regulatory approvals needed to sell the asset.

For any note or loan used to collateralize or purchase the asset, the agency must disclose the:

  • Type of activity (governmental, business-type, etc.)
  • Historical cost
  • Accumulated depreciation/amortization
  • Net book value
  • Remaining balance of the note or loan

The agency must continue to report a capital asset held for sale within the appropriate major class of capital asset at fiscal year-end.