Annual_Report_1989_001 - Laserfiche WebLink

Home

NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBEft 31 1989 Note 1 Summary of Siqnificant A cou tinq Poticies (Continued) considered a measure of "avaiLahLe spendahLe reso�rces.' Gover�mentaL fund operating statements present increases (revenues and other fina�cing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses ot 'available spendahte 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 than in Governmental Funds. Public domain general fixed assets consisting ot certain improvements other than 6uitdings, incLuding roads, bridges, curhs and gutters, streets and sidewaLks, and lighting systems, are capitaLized atong with other general fixed assets. No depreciation has been provided on general fixed assets. � Long-term Liabilities expected to be financed from governmentaL funds are accounted for in [he GeneraL long- term Deht Account Group, not in the governmenYaL tunds. The account groups differ from 'funds` in that they are not invotved wiTh measurement of operations. They are concerned only with the measurement of financial position. Noncurrent portions of tong-term receivahtes due to governmenial funds are reported on their balance sheets, in spite of their measurement focus. However, speciaL reportin9 treatments are used to indicate in aLl governmental funds that they should not be considered "avaiLa6le spendabLe resources', since they do not represent net current assets. Recognition of reve�ues in these f�nds represented by noncurrent receiva6Les are deferred untiL they hecome current receivahles. Because of their spending measurement focus, expenditures recognition for 9overnmental fund types exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such -long- term amounts are not recognized as governmentaL fund type expenditures or f�nd liabilities. They are instead reported as liabitities in the GeneraL Long-ierm Debi Account Group. Proprietary funds are accounted for on a cost of services or "capitat maintenance' measurement focus. This means that aLL assets, incWding tixed assets, and atl Liabilities, including long-term liabitities associated uith their activity, are included o� their batance sheeis. Their reported fund equity .is segregated into contributed capitat and retained earnings components. The operatin9 statements of the funds present increases (revenuesj and decreases (expenses) in net totaL zssets. Fixed assets of the Enterprise funds are capitatized in these funds. Depreciation is charged as an expense against operations, and is provided on the straight-Line method. The foLtouing 2a6Le summarized deprecia6le �ives of types of property. = Years BuiLding and Structures 25-40 Furniture, equipment, vehicLes 5-20 Distri6ution system 80'�� D. Basis of Accounting The accounting and financial reportiog treatment appLied to a fund is determined 6y its measurement focus. ALt governmentaL funds and expenda6le trust funds are accounted for using a current financiaL resources measurement focus. With this measurement focus, onLy currert assets and current liabitities generatty are 30