¶ … Beautifully Fabulous State CARF. The information assists in preparation of statement of net assets. The paper also provides definitions of various components of statement of net assets. Statement of Net Assets

According to Governmental Accounting Standards Board (2007), a statement of net assets is similar to a balance sheet. It has both asset section as well as liability section. An asset refers to resources the government employs in its operations. On the other hand, a liability refers to government's commitment to transfer its resources to other entities in the future. Hence, a statement of net assets reports the resources the government owns after clearing its obligations.

Total Asset Section

The total asset section constitutes of two parts: the current asset part and the non-current asset part. Current assets are assets that the government uses in a given financial year. They do not last more than a year. On the other hand, non-current assets last for more than a fiscal year.

Cash and cash equivalents, receivables, inventories, investments, securities lending collaterals amongst others constitute current assets. According to IFRS Dictionary, cash refers to cash on hand together with demand deposits. On the other hand, Cash equivalents refer to short-term investments. Such investments are liquid and can undergo conversion into cash without a significant loss on its face value. Investopedia defines receivables as customers' short-term obligation to an entity resulting from delivery of goods or provision of services. Similarly, Business Dictionary defines inventories as tangible goods that an organization employs in support activities, production of other items or goods for resale. Investment refers to routing of funds to acquire financial instruments in order to gain from their values appreciation or interest earnings (Finance maps of the world, 2012). Globalcustody defines security-lending collaterals as assets an entity hold as a guarantee on loans advanced to borrowers.

Beautifully Fabulous State

Statement of Net Assets

as of December 31, 2008

(in thousands)

Assets

Current assets:

Cash and cash equivalents

Investopedia defines warrants as derivative securities that give the holder the right to purchase equity securities at a definite price within a specific period from the issuer. In order to compute total assets, deferred outflows need to be included as part of the assets.
Total Liabilities

Total liabilities are composed of both current and long-term liabilities. Current liabilities are obligations falling due in the current financial year. Long-term liabilities fall due in the ensuing fiscal periods.

Beautifully Fabulous State

Statement of Net Assets

as of December 31, 2008

(in thousands)

Current liabilities:

Obligation under security lending

Other current liabilities

4,328.09

Total current liabilities

4,588.28

Long-term liabilities

9,271.41

Total liabilities

13,859.69

14,768.12

Net Assets

To determine net assets, accountants deduct total liabilities…