The street maintenance division of a municipality is privatized and sold all the maintenance equipment to private company. The employees of street maintenance division hired by the private company and provided the same services as previously provided by the municipality. This division was provided street maintenance by the municipality and charged fees for users. With that fees collected from the users, the municipality cover its operating expenditure and interest for its borrowings. a) Is there is any difference in the accounting and reporting procedures between municipality and private businesses that provide the same street maintenance services? b) Discuss and list down the information requirements of the private management to make financial decision?
1. The street maintenance division of a municipality is privatized and sold all the maintenance equipment to private company. The employees of street maintenance division hired by the private company and provided the same services as previously provided by the municipality. This division was provided street maintenance by the municipality and charged fees for users. With that fees collected from the users, the municipality cover its operating expenditure and interest for its borrowings.
a) Is there is any difference in the accounting and reporting procedures between municipality and private businesses that provide the same street maintenance services?
b) Discuss and list down the information requirements of the private management to make financial decision?
2.The long-term assets and liabilities are not generally accounted under general funds however it accounted through non-fund accounts. You are required to discuss the above mentioned statement with suitable examples.
Step by step
Solved in 2 steps
