• A description of the district-wide financial statements, noting that neither fiduciary funds nor component units that are fiduciary in nature are included.
• The measurement focus and basis of accounting used in the district-wide statements.
• The policy for eliminating internal activity in the statement of activities.
• The policy for applying FASB pronouncements issued after November 30, 1989, to business-type activities and to enterprise funds of the school district.
• The policy for capitalizing assets and for estimating the useful lives of those assets used in determining depreciation expense.
• A description of the types of transactions included in program revenues and the policy for allocating indirect expenses to functions in the statement of activities.
• The district’s policy for defining operating and nonoperating revenues of proprietary funds.
• The district’s policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available.

Par. 116. School districts should provide detail in the notes to the financial statements about capital assets and long-term liabilities reported in the statement of net assets. The information disclosed should be divided into major classes of capital assets and long-term liabilities as well as between those associated with governmental activities and those associated with business-type activities. Capital assets that are not being depreciated should be disclosed separately from those that are being depreciated.

Par. 117. School districts should present information about major classes of capital assets to include:

• Beginning and end-of-year balances with accumulated depreciation presented separately from historical cost.
• Capital acquisitions during the reporting period.
• Sales or other dispositions during the reporting period.
• Current-period depreciation expense, with disclosure of the amounts charged to each of the functions in the statement of activities.

Par. 119. School districts should include information about long-term liabilities to include both long-term debt (such as bonds, notes, loans, and leases payable) and other long-term liabilities (such as compensated absences, and claims and judgments). Information presented about long-term liabilities should include:

• Beginning and end-of-year balances (regardless of whether prior-year data are presented on the face of the government-wide financial statements).
• Increases and decreases (separately presented).
• The portion of each item that is due within one year of the statement date.
• Governmental funds that had been used to liquidate other long-term liabilities (such as compensated absences and pension liabilities) in the prior year’s financial statements.