Assets · Current Assets
1170 Prepaid Items
Since 2026.03
- What it is
- Prepaid items represent payments made in advance of the period benefited, to be recognized as expense in future periods.
- Accounting standard
- Prepaid items are recognized as assets when they meet the definition of an asset and are expensed over the period of benefit.
- Accounting note
- Maintain schedule of prepaid items and amortization timing (insurance, service contracts).
- Examples
- Prepaid insurance; prepaid software maintenance; prepaid rent.
- Do not use for
- Inventory (1060).
Where it reports on the Cities FTR
| Fund type | FTR line |
|---|---|
| Governmental funds | Form 37 R11 Prepaid ItemsGEN_PREPAID_ITEMS Column for the fund's type (general, special revenue, capital projects, debt service, permanent). |
| Government-wide ledger (980) | Not reported. Current assets of governmental activities are not reported on form 40. |
| Enterprise funds (water example) | Form 38 R09 Prepaid ItemsENT_PREPAID_ITEM Enterprise or internal service column. |
| Internal service funds | Form 38 R09 Prepaid ItemsINT_SERV_PREPAID_ITEM Enterprise or internal service column. |
| Fiduciary funds (pension trust example) | Form 39 R14.5 Other Current AssetsPEN_OTHER_EE_BEN_TRUST_OTHR_CURR_ASSETS Column for the trust or custodial fund type. |
Enterprise placement is shown for a water fund; other enterprise funds use the same line on their own form. Check any combination in the FTR finder.