In the Town of Clementville, which assets are included in capital assets for governmental activities?

• A. Town buildings
• B. Intangible assets
• C. Streets, sidewalks, and water lines
• D. All of the above

Answer: (A)

Capital assets are long-lived, non-financial assets used in delivering government services that are capitalized on the government’s financial statements. Under GASB, this includes tangible assets like buildings and infrastructure (such as streets, sidewalks, and water lines) and certain intangible assets with finite lives (for example, software licenses) that meet capitalization criteria. These assets are reported in the government-wide statements and depreciated or amortized over their useful lives.

So, in the Town of Clementville, capital assets for governmental activities would include town buildings and infrastructure like streets, sidewalks, and water lines, and any eligible intangible assets. The comprehensive view recognizes all these asset types, not just buildings.