Which of the following is not a required disclosure about each major class of capital assets?

• A. Date of acquisition and method of acquisition or disposition.
• B. Depreciation method and estimated useful life.
• C. Capital acquisitions and sales or other dispositions during the year showing the date and method of acquisition or disposition.
• D. Description of major assets by class.

Answer: (C)

This question tests what information must accompany each major class of capital assets in government financial reporting. For every major class you must show when the assets were acquired and how the acquisitions or dispositions occurred, because that ties into accountability and the asset’s provenance. You also need to disclose the depreciation method used and the estimated useful life, so readers can understand how depreciation is calculated and how long the assets are expected to contribute to operations. Describing the assets by class helps readers see the composition and significance of the capital assets overall.

The detail that is not required as a separate per-class disclosure is a year-to-date list of capital acquisitions and sales or dispositions showing dates and methods. That transactional log is not required to accompany each major class note; instead, capital asset activity is typically summarized in other notes or schedules, while the per-class disclosures focus on acquisition timing, depreciation and useful life, and a clear description of the assets in that class.