Which statement about stewardship land is true?

Which statement about stewardship land is true?

• A. It is not recorded in any financial statements.
• B. It is recorded in the supplemental to the financial statements.
• C. It is recorded as a current asset.
• D. It is expensed when acquired.

Answer: (B)

Stewardship land is land the government holds for the public’s benefit and future use, not as a typical operating asset. In GASB reporting, this type of land is not carried on the main financial statements as a standard asset; instead, information about stewardship land is disclosed in the supplemental information that accompanies the financial statements. That disclosure provides the necessary details without treating stewardship land as a current asset or as an expense at acquisition. This is why the statement that stewardship land is recorded in the supplemental to the financial statements is the best fit.

Stewardship land is land the government holds for the public’s benefit and future use, not as a typical operating asset. In GASB reporting, this type of land is not carried on the main financial statements as a standard asset; instead, information about stewardship land is disclosed in the supplemental information that accompanies the financial statements. That disclosure provides the necessary details without treating stewardship land as a current asset or as an expense at acquisition. This is why the statement that stewardship land is recorded in the supplemental to the financial statements is the best fit.