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<br />-30- <br />NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br /> <br />P. State-Wide Pension Plans <br /> <br />For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension <br />expense, information about the fiduciary net position of the Public Employees Retirement Association <br />(PERA) and additions to/deductions from the PERA’s fiduciary net position have been determined on the <br />same basis as they are reported by the PERA. For this purpose, plan contributions are recognized as of <br />employer payroll paid dates and benefit payments, and refunds are recognized when due and payable in <br />accordance with the benefit terms. Investments are reported at fair value. <br /> <br />Q. Deferred Outflows/Inflows of Resources <br /> <br />In addition to assets and liabilities, statements of financial position or balance sheets, will sometimes <br />report separate sections for deferred outflows or inflows of resources. These separate financial statement <br />elements represent a consumption or acquisition of net assets that applies to a future period and so will <br />not be recognized as an outflow of resources (expense/expenditure) or an inflow of financial resources <br />(revenue) until then. <br /> <br />The City reports deferred outflows and inflows of resources related to pensions in the government-wide <br />and enterprise funds Statement of Net Position. These deferred outflows and inflows result from <br />differences between expected and actual economic experience, changes in actuarial assumptions, net <br />collective difference between projected and actual investment earnings, changes in proportion, and <br />contributions to the plan subsequent to the measurement date and before the end of the reporting period. <br />These amounts are deferred and amortized as required under pension standards. <br /> <br />Unavailable revenue arises only under the modified accrual basis of accounting and, therefore, is reported <br />only in the governmental funds Balance Sheet. The governmental funds report unavaila ble revenue from <br />three sources: property taxes, special assessments, and long-term receivables. These amounts are deferred <br />and recognized as an inflow of resources in the period that the amounts become available. <br /> <br />Imposed nonexchange revenue transactions, state aid received for subsequent years, is deferred and <br />recognized as an inflow of resources in the period that the resources are approp riated. This item is <br />reported both in the governmental funds Balance Sheet and the government-wide Statement of Net <br />Position as a deferred inflow of resources. <br /> <br />The City reports deferred inflows of resources related to leases receivable, which requires lessors to <br />recognize deferred inflows of resources to correspond to lease receivables. These amounts are deferred <br />and amortized in a systematic and rationale manner over the term of the lease. This item is reported both <br />in the governmental funds Balance Sheet and the government-wide Statement of Net Position as a <br />deferred inflow of resources. <br /> <br />R. Net Position Classifications and Flow Assumptions <br /> <br />In the government-wide and proprietary fund financial statements, net position represents the difference <br />between assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net position <br />is displayed in three components: <br /> <br />• Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation, <br />reduced by any outstanding debt attributable to acquire capital assets.