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CITY Of ROSEVILLE. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTIN�ED) OECEMBER 31, 1988 No[e 1- 5 rv of S�q ificant Ac<ountino Policies (Continued) considered a measure of 'availa6Le spenda6Le resources.' GovernmentaL fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of 'avaitabte spendable resources' during a period. Fixed assets used in governmentat fund Type operations (generaL fixed assets) are accounted for in the GeneraL Fixed Assets Account Group, rather ihan in GovernmentaL Funds. Public domain general fixed assets consisting of certain improvements other than buiLdings, including roads, bridges, curbs and gutters, streets and sidewatks, and Lighting systems, are capi[aLized aLong aith other general tixed assets. No depreciation has 6een provided on general fixed assets. Long-term LiahiLities expected to 6e financed from governmentaL funds are accounted tor in the Generat Long- term Debt Account Group, not in the governmentaL funds. The account groups differ from 'funds" in that they are not involved vith measureme�t of operations. They are concerned onLy with the measurement of finantial position. Noncurrent portions of long-term receiva6Les due to governmentat funds are reported on their 6alance sheets, in spite of their measurement focus. However, special reporting treatments are used to indicate in aLl governmental funds that they shoutd not be considered "avaiLable spendabte resources", since they do not represent net current assets. Recognition ot revenues in these funds represented by noncurre�t receiva6tes are deterred until they become current receiva6les. Because of their spending measurement fows, ezpenditures recognition for governmental fund types exctude ----- amounts �represented 6y noncurrent liabiLities. Since they do not affect nei current assets, such tong- term amounts are not recognized as governmental fund type expenditures or tund liabilities. They are i�stead reported as li�abilities in the General Long-term De6t Account Group. Proprietary funds are accounted for on a cost of services or 'capital maintenance' measurement focus. This means that all assets, incLuding fixed assets, and alL tiabitities, including Long-term Liabitities associaied With their activity, are induded on their halance sheets. Their reported fund equity is segregated into contributed capitaL and retained earnings components. The operat5ng statements of the funds present increases (revenues) and decreases (expenses) in net totaL assets. - D. Basis of Accounting Basis of accounting refers [o when revenues and expenditures or expenses are recognized in the accounts and reported in the financiat statements. Basis of accounting reLates to the timing of the measurement made, regardLess of the measurement focus appLied. GovernmentaL and Agency Funds are accounted for using the modified accruaL basis of accounting. Their revenues are recognized when they become measurabLe and avaitabte as net current assets. Avaitable means colLectibLe uithin the current period or soon enough thereafter to pay Liabitities of the current period. Expenditures are generaLty recognized under the moditied accruaL 6asis of accounting when the related fund tia6ility is incurred, ezcept for principal and interest on general Long-term deht which is recognized when due, and accumuLated unpaid vacation and compensatory time off which are recognized vhen paid. 30