The tables in the notes show the amount and percent under funded or over funded for the current year and for past years. Other types of long term obligations include capital leases, sick leave and accrued vacation. The next major lesson in this chapter was the lesson on long term fixed assets . Governmental accounting and financial reporting draws a distinction between long term fixed assets and infrastructure. Fixed assets can be building, equipment, or machinery.
Infrastructure consists of the major physical assets, such as streets, sewers, and bridges.
Reporting on infrastructure is optional on the grounds that finding the cost might be more trouble than benefit and it is unlikely that the government will sell these. Acquiring long term fixed assets presents a difficult situation for government. In business circumstance, the rationale is presumably to buy a fixed asset that will generate a greater return than some other investment. In government, attention to improving the community may be the reason but fixed assets are also seen in terms of appeal to voters. Thus, a community may end up with a mixture of economically viable and economically wasteful fixed assets.