Laserfiche WebLink
ACCOUNTING STANDARDS UPDATE <br />GASB Interpretation No. 2 Disclosure of Conduit Debt Obligations <br />This Interpretation was issued in August, 1995 and provides disclosure requirements for conduit <br />debt obligations. <br />APPENDIX B <br />Conduit debt obligations are certain limited - obligation revenue bonds, certificates of <br />participation, or similar debt instruments issued by a state or local governmental entity for the <br />express purpose of providing capital financing for a specific third party that is not a part of the <br />issuer's financial reporting entity. Although conduit debt obligations bear the name of the <br />governmental issuer, the issuer has no obligation for such debt beyond the resources provided by <br />a lease or loan with the third party on whose behalf they are issued. <br />The required disclosures include a general description of the conduit debt transactions, the <br />aggregate amount of all conduit debt obligations outstanding at the balance sheet date, and a <br />clear indication that the issuer has no obligation for the debt beyond the resources provided by <br />related leases or loans. <br />The provisions of the Interpretation are effective for financial statements for periods beginning <br />after December 15, 1995. <br />PREPARED BY TAUTGES, REDPATH & CO., LTD. PAGE 8 OF 8 <br />