Govt Acct Standards Case

Government Accounting Standards Case
The City of James has $10 million of 10% bonds payable in its financial statements. These bonds contain a call provision. The Agent Company told the City that it will help find parties to call back the old bond and refinance the bonds with 7% interest payments. The new bonds will not change the original redemption dates from the old bonds. However, Agent Company demands a $100,000 service charge for its role in these transactions. While the City Council recognizes the benefits of the proposed services, the City is unsure how to disclose such payments when the transactions are completed. Thus,
City asks its accountants for guidance.
-Use GARS.
-Wiley has GARS secondary source.
-How to disclose.
-What are city requirements for disclosure as a government.
Debt refinancing.
Call bond disclosures.
debt refunding
Broker, agent.
How to disclose such payments and the relationship with the broker?
GASB 53.