Although governments may elect to report conduit debt in their government-wide and proprietary fund statements, the GASB has ruled that note disclosure is sufficient.

Question

Quizplus · Accepted Answer

The GASB (Governmental Accounting Standards Board) allows governments to report conduit debt in their financial statements, but it has determined that note disclosure alone is sufficient for this type of debt, as the government itself is not liable for the debt unless it explicitly guarantees it.

Although Governments May Elect to Report Conduit Debt in Their