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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

Notes & Samples

NOTE 5 – Long-Term Liabilities
Reporting Long-Term Liabilities

Reporting liabilities in the government-wide statement of net position requires reporting both of the following components:

  • The amount due in one year (current portion)
  • The amount due in more than one year (noncurrent portion)

Changes in Long-Term Liabilities Table

Note: Agencies are required to submit changes in long-term liabilities through the LTLN web application.

Disclose information about long-term liabilities — including long-term debt and other long-term liabilities.

Long-term debt includes:

  • Bonds payable
  • Notes payable
  • Loans payable
  • Leases payable
  • Subscriptions payable
  • Availability payment arrangement (APA) payable

Other long-term liabilities include:

  • Employee compensable leave
  • Liabilities payable from restricted assets
  • Pollution remediation obligations
  • Asset retirement obligations
  • Claims and judgments

Present the following information in the Changes in Long-Term Liabilities table:

  • Beginning balances
  • Ending balances
  • Additions and reductions transaction amounts are entered — separately, not as a single net increase (decrease)
  • Enter restatement/adjustment to recognize the result of a transaction adjustment or restatement — do not use restatement/adjustment to correct penny rounding variances
  • The portions of each item that are due within one year of the statement date (principal amount adjusted for premiums and discounts)

Disclose the following types of obligations in the Changes in Long-Term Liabilities table:

  • Claims and judgments
  • Right to use lease obligations
  • Right to use subscription obligations
  • Employees compensable leave
  • Notes and loans payable
  • Notes and loans payable from direct borrowings
  • Notes and loans payable from direct placements
  • General obligation bonds payable
  • General obligation bonds payable from direct borrowings
  • General obligation bonds payable from direct placements
  • Revenue bonds payable
  • Revenue bonds payable from direct borrowings
  • Revenue bonds payable from direct placements
  • Pollution remediation obligations
  • Asset retirement obligations
  • Liabilities payable from restricted assets (only if maturities exceed one year)
  • Availability payment arrangement obligations

A note disclosure text box is provided for each category to corroborate facts or explanations. Long-term liability basis conversion working papers and related instructions are available in the AFR Working Papers.

WARNING: Beginning balances are automatically populated in the LTLN web application based on prior fiscal year audited balances. Ending balances must tie to the combined balance sheet amounts for each long-term liability line item.