GAAP Flyer #4: Accounting for PHA Debt - (January 2000)
This Flyer provides guidance on the treatment of HUD guaranteed debt (third party) and HUD-held debt (direct debt) under generally accepted accounting principles (GAAP). Under the GAAP basis of accounting, PHAs who use the enterprise model should remove this debt from their books and reclassify it as contributed capital. PHAs using the governmental model (modified accrual) should remove the debt from the General Long-Term Debt Account Group (GLTDAG) on the balance sheet. The Third party debt that is not HUD guaranteed or HUD-held should remain on the PHA’s books as an obligation of the PHA.