Fixed assets acquired through proprietary funds are reported in the Statement of Net Assets of those funds.

Question

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Fixed assets acquired through proprietary funds are reported in the Statement of Net Assets of those funds. This is because proprietary funds are used to account for the operations that are financed and operated primarily for the benefit of the government entity itself, rather than for the benefit of the general public. Examples of proprietary funds include enterprise funds, internal service funds, and trust funds. As such, it is appropriate to report the assets and liabilities of these funds on a separate statement in order to more accurately reflect the financial position of the government entity.

Fixed Assets Acquired Through Proprietary Funds Are Reported in the Statement