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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

Note 5 includes a narrative identifying long-term liabilities, along with a table presenting balances and current fiscal year transactions for each type of long-term liability. The table contains separate sections for governmental activities and business-type activities.

GASB 34 requires liabilities with average maturities greater than one year to be reported in the long-term liabilities activity table for both of the following components:

  • Amount due within one year (current)
  • Amount due in more than one year (noncurrent)

GASB also requires a separate disclosure in the debt service requirements table for principal and interest on debt service to maturity.

Discrete component units must be reported using the full accrual basis of accounting in the same manner as proprietary funds. Accordingly, agencies must follow the instructions pertaining to business-type activities when recording long-term liabilities for discrete component units.