Exhibit 1 Sample Consolidated Statement of Net Assets
in Liquidation XYZ Company Consolidated Statement of Net Assets
in Liquidation At December 31, 20X2 (Dollars in thousands) ASSETS Cash and cash equivalents $ 900 Accounts receivable 1,900 Estimated operation income to 900 be earned during liquidation Inventory 1,440 intangibles 500 Property, plant, and equipment 8,620 14,260 LIABILITIES AND NET ASSETS Accounts payable and accrued expenses 360 Estimated oeprating costs and expenses 1,000 to be incurred during liquidation Estimated disposal and other liquidation 760 costs to be incurred Total liabilities 2,120 Net assets in liquidation available $ 12,140 for distribution See notes to financial statements.
Statement of net assets
(proprietary funds) [??] Statement of net position (proprietary funds)
In the government-wide statement of net assets
are presented all financial and capital assets.
The financial economics approach to accounting and funding advocates recognizing its version of the unfunded pension liability in the statement of net assets
and advocates immediate recognition of all changes in it each year as an expense, without any amortization.
For example, a water utility's loss from an uncollectible account receivable as a result of a major customer's deteriorating financial condition leading to the bankruptcy of that customer subsequent to the statement of net assets
date may be indicative of conditions existing at the statement of net assets
date, thereby calling for adjustment of the financial statements before their issuance.
But if the premium stabilization reserve for the pool is a net negative balance, a receivable is not recognized in the plan's statement of net assets
available for benefits, because the participating employers in the pool did not agree to pay this balance.
The purpose of GASB 63 is to amend GASB Statement 34, Basic Financial Statements--and Management's Discussion and Analysis--for State and Local Governments, in order to report the deferred outflows of resources separate from the assets, to separate the deferred inflows of resources from liabilities, and to rename the statement of net assets
to the statement of net position.
Proprietary fund statement of net assets
. Proprietary funds, unlike governmental funds, report both capital assets and long-term debt, even though neither is directly relevant to near-term financing.
40, Deposit and Investment Risk Disclosures, should be made for securities lending collateral that is reported in the statement of net assets
* and for the underlying securities, as discussed in this paragraph.
The changes in fair values of the hedging derivative instrument would be recognized as what Statement 53 refers to as either deferred inflows or deferred outflows in a government's statement of net assets
. Deferred inflows or outflows can be thought of as holding accounts that offset changes in the fair values of derivative instruments used for hedging, similar to other comprehensive income in corporate financial statements.