The liability for special assessment bonds that carry a secondary pledge of a city's general credit,if reported in conformity with GAAP,should be reported in the balance sheet(s)of

Question

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The liability for special assessment bonds that carry a secondary pledge of a city's general credit should be reported in the balance sheets of the governmental activities accounts. This is because the liability is ultimately payable from resources that are available to the government as a whole, rather than from resources that are held in trust or administered by the government for the benefit of a particular group or individual. The special assessment bonds should not be reported in a debt service fund or an agency fund, since they are not required to be paid solely from the resources held in those funds. Disclosure in the notes to the financial statements is not sufficient, as the liability should be reported in the balance sheet according to GAAP.

The Liability for Special Assessment Bonds That Carry a Secondary