GASB Requires That Infrastructure Be Recorded Retroactively by Phase 1

question 42

Multiple Choice

GASB requires that infrastructure be recorded retroactively by Phase 1 governments:

• A) For fiscal years beginning after June 15, 2006
• B) For fiscal years beginning after June 15, 2005
• C) Not required, but encouraged to adopt infrastructure retroactively
• D) None of the above

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Definitions:

Stated Interest Rate

The interest rate specified on a loan or investment agreement, not accounting for compounding or fees.

Prevailing Rate

The current interest rate or wage rate for a particular industry or geographic location.

Present Value

The value today of a sum of money or cash flows expected in the future, discounted at a certain rate of return.

Maturity Value

The amount that will be paid out or received, including principal and interest, upon the expiration or maturity of a financial instrument.