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CITY OF ROSEVILLE, MINNESOTA <br />NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) <br />DECEMBER 31, 1982 � <br />Note 1- Summary of Significant Accounting Policies (Continued) <br />B. Measurement Pocus (Continued) <br />Noncurrent portions of long-term receivables due to governmental funds <br />are reported on their balance sheets, in spite of their measurement <br />focus. However, special reporting treatments are used to indicate in <br />all governmental funds except special assessment funds, that they should <br />not be considered "available spendable resources", since they do not <br />represent net current assets. Recognition of revenues in these funds <br />represented by noncurrent receivables are deferred until they become <br />current receivables. <br />Because of their spending measurement focus, expenditure recognition <br />for governmental fund types excludes amounts represented by noncurrent <br />liabilities. Since they do not affect net current assets, such long- <br />term amounts are not recognized as governmental fund type expenditures <br />or fund liabilities. They are instead reported as liabilities in the <br />General Long-term Debt Account Group. <br />Proprietary funds are accounted for on a cost of services or "capital <br />maintenance" measurement focus. This means that all assets, including <br />fixed assets, and all liabilities, including long-term liabilities, <br />associated with their activity are included on their balance sheets. <br />Their reported fund equity is segregated into contributed capital and <br />retained earnings components. Proprietary fund types operating statements <br />present increases (revenues) and decreases (expenses) in net total assets. <br />Fixed assets of the Enterprise funds are capitalized in these funds. <br />Depreciation is charged as an expense against operations, and is <br />provided on the straight-line method. The following table summarizes <br />depreciable lives of type of property. <br />Years <br />Building and structures 25- 40 <br />Furniture, equipment, vehicles 5- 20 <br />Distribution system 80-100 <br />C. Basis of Accounting <br />Basis of accounting refers to when revenues and expenditures or expenses <br />are recognized in the accounts and reported in the financial statements. <br />Basis of accounting relates to the timing of the measurement made, <br />regardless of the measurement focus applied. <br />Governmental funds, Expendable Trust funds and Agency funds are accounted <br />for usiag the modified accrual Uasis of accounting. Their revenues are <br />recognized when they become measurable and available. Substantially a11 <br />sources of revenue are accrued except interest on special assessments <br />receivable, which is recognized when due. <br />-33- <br />