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Max Maxfield was just hired by your town as a new controller

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Max Maxfield was just hired by your town as a new controller. He has a love for golf, and was able to convince the town's people to provide city funds for the construction of a new golf course (Max gets free golf year round).

The city funds the construction of the golf course by issuing $100 million in general obligation bonds. However, it accounts for the golf course in an enterprise fund, and it intends to repay the debt from green fees. Should the city, in its government-wide statement of net position, report the debt as a governmental activity and the golf course as a business-type activity? Alternatively, should it report both the debt and the golf course in the same category of activity? If so, then which one?

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Solution Summary

The expert determines if a city should report the debt as a governmental activity and the gold course as a business-type activity. The response addresses the query posted in 255 words with APA references.

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The response addresses the query posted in 255 words with APA references

//The issues relating to accounting in the government books are governed by the governmental accounting standard board. In this context, the following discussion has been made on the aspect of accounting for the golf course activities in the government-wide statement of the net position.//

As the provisions enunciated in the statement number 34 of the ...

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Ashish Sharma, MBA (IP)
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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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