My WebLink
|
Help
|
About
|
Sign Out
Home
Browse
Search
05-31-05
ArdenHills
>
Administration
>
City Council
>
City Council Packets
>
2000-2009
>
2005
>
05-31-05
Metadata
Thumbnails
Annotations
Entry Properties
Last modified
9/17/2012 10:46:45 AM
Creation date
11/14/2006 4:24:48 PM
Metadata
Fields
Template:
General
Jump to thumbnail
< previous set
next set >
There are no annotations on this page.
Document management portal powered by Laserfiche WebLink 9 © 1998-2015
Laserfiche.
All rights reserved.
/
222
PDF
Print
Pages to print
Enter page numbers and/or page ranges separated by commas. For example, 1,3,5-12.
After downloading, print the document using a PDF reader (e.g. Adobe Reader).
View images
View plain text
<br />r <br />I <br />I <br />( <br /> <br />ff.. <br />I! <br />!1 <br /> <br />u <br /> <br />1 i <br /> <br />n <br />U <br /> <br />fl <br /> <br />l: <br /> <br />I <br />[~ <br /> <br />[: <br /> <br />! : <br />L <br /> <br />I <br />( <br />I <br /> <br />. <br /> <br />CITY OF ARDEN IDLLS. MlNNESOT A <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 2004 <br /> <br />Nntel: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED <br /> <br />c. Measurement Focus, Basis of Accounting and Financial Statement Presentation <br /> <br />The government-wide fmandal statements are reported using the economic resources measurement focus and the <br />accrual basis of accounting, as are the proprietary fimd and fiduciary fimd fmancial statements. Revenues are <br />recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash <br />flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are <br />recognized as revenue as soon as all eligibility requirements imposed by the provider have been meL <br /> <br />Governmental fund financial statements are reported using the current financial resources measurement focus and <br />the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and <br />available. Revenues are considered to be available when they are collectible within the current period or soon <br />enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be <br />available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are <br />recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as <br />expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. <br /> <br />Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be <br />suscepl1ble to accrual and so have been recognized as revenues of the current fiscal period, Only the portion of <br />special assessments receivable due within the current fiscal period is considered to be susceptlble to accrual as <br />revenue of the current period. All other revenue items are considered to be measurable and available only when cash <br />is received by the City. <br /> <br />Revenue resnlting from exchange transactions, in which each party gives and receives essentially equal value, is <br />recorded on the accrua1 basis when the exchange takes place. On a modified accrua1 basis, revenue is recorded in the <br />year in which the resources are measurable and become available. <br /> <br />Non-exchange transactions, in which the City receives value without directly giving equal value in return, inclnde <br />property taxes, grants, entitlement and donations_ On an accrual basis, revenue from property taxes is recognized in <br />the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in <br />which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which <br />specify the year when the resources are required to be used or the year when use is first permitted, matching <br />requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure <br />requirements. in which the resources are provided to the City on a reimbursement basis. On a modified accrual <br />basis, revenue from non-exchange transactions must also be available before it can be recognized. <br /> <br />Deferred revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants <br />and entitlements received before eligIoility requirements are met are also recorded as deferred revenue. On the <br />modified accrual basis, receivables that will not be collected within the available period have also been reported as <br />deferred revenue in the fimd financial statements. <br /> <br />The preparation of financial statements in conformity with accounting principles generally accepted in the United <br />States of America requires management to make estimates and asswnptions that affect certain reported amounts and <br />disclosures. Accordingly, actual results could differ from those estimates. <br /> <br />-19- <br />
The URL can be used to link to this page
Your browser does not support the video tag.