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<br />. <br /> <br />. <br /> <br />. <br /> <br />INTRODUCTION <br /> <br />For fiscal-year ending December 31, 2004, the City of Arden Hills will be required to implement <br />Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial <br />Statements and Management's Discussion and Analysis for State and Local Governments. <br />Statement No. 34 establishes new financial reporting requirements for state and local <br />governments throughout the Unitcd States. When implemented, it will create new information <br />and will restructure much of the information that the City of Arden Hills has presented in its <br />annual reports in the past. The intent of these new requirements is to make annual reports more <br />comprehensive and easier to understand and use. <br /> <br />Two key components of Statement No. 34 require governments to report capital assets and to <br />depreciate the capital assets over their estimated useful lives. Therefore, it will be necessary for <br />the City to develop and implement a Capital Asset Policy that meets the new financial statement <br />reporting requirements, and provides management information. <br /> <br />While the Capital Asset Policy is not all encompassing, it will provide guidance to implementing <br />the new reporting requirements, i.e., meeting the primary objective of financial reporting as it <br />pertains to valuation, allocation, presentation and disclosure; thcrefore this policy will not used <br />for property control purposes. <br /> <br />This policy is effective January 1,2004. <br /> <br />2 <br />