Skip to content
Breadcrumbs

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Note: To navigate this guide on a mobile device you must use the Table of Contents.

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Notes & Samples

NOTE 5 – Long-Term Liabilities
Availability Payment Arrangements

In an availability payment arrangement (APA), the agency procures a capital asset or service. GASB 94 states that APAs should be accounted for in the period to which APA payments relate as either:

  • A financed purchase of an asset
  • An outflow of resources

An APA that is related to designing, constructing and financing a nonfinancial asset in which ownership of the asset transfers by the end of the contract should be accounted for by the agency as a financed purchase of the underlying nonfinancial asset. Examples of such assets are building a dormitory or constructing a bridge.

An APA related to operating and maintaining a nonfinancial asset should be expensed in the period to which the payments relate. An example of such an asset is operating a parking garage or tollway.

An agency that is engaged in APA contracts with multiple components should recognize each component as a separate arrangement.
For more guidance on financed purchases, see Notes and Loans Payable.