Get Accounting For Variable Rate Demand Obligations For Gasb

Variable-rate demand obligations (VRDOs) are debt securities that bear interest at a floating, or variable, rate adjusted at specified intervals (daily, weekly, or monthly) ing to a specific index or through a remarketing process. Holders can redeem these securities at designated times.

Income Statement The Income Statement summarizes the total revenues and expenses incurred by the business, showing the profitability (net income or net loss) over a specified period of time, usually a month, quarter or year.

While the VRDN can either be taxable or tax-free, municipality governments generally issue variable-rate demands that are tax-exempted by the federal government.

A variable-rate demand note (VRDN) is a long-term municipal bond which is offered to investors through money market funds. The notes allow a municipal government to borrow money for long periods of time while paying short-term interest rates to investors.

VFNs are notes that are issued under a note instrument, where the principal balance thereof may increase or decrease from time to time. Where the number of VFNs that are issued increases or decreases, this requires a notification to TISE for a further listing of notes, or a partial delisting of notes.

ARS are an alternative to variable rate demand obligation (VRDO) bonds. A VRDO is a security for which the interest rate is reset periodically, typically through a remarketing process, or ing to a specified index.

Variable-rate demand notes produce returns that have low correlations with stocks and bonds, thus, making them good investments for portfolio diversification. In addition, VRDNs issued by municipalities are generally exempt from federal taxes. Many issues are also exempt from state taxes in the state of issue.