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Indian River County, Florida <br />Notes To Financial Statements <br />Year Ended September 30, 2016 <br />NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued <br />D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund <br />Balances - Continued <br />10. Pensions/Net Pension Liability <br />The County participates in both the Florida Retirement System (FRS), which operates a defined benefit <br />and compensation plan, and the Health Insurance Subsidy Program (HIS), which is a defined benefit <br />plan. For purposes of measuring the net pension liability, deferred outflows and inflows of resources <br />related to pensions, pension expense, and fiduciary net position are determined on the same basis as the <br />FRS. Benefit payments (including refunds of employee contributions) are recognized when due and <br />payable in accordance with the benefit terms. Investments are reported at fair value. <br />The net pension liability represents the County's proportionate share of the net pension liability of the <br />cost-sharing pension plans in which it participates. This proportionate amount represents a share of the <br />present value of projected benefit payments to be provided through the cost-sharing pension plan to <br />current active and inactive employees. The benefit payments are attributable to those employees past <br />periods of service, less the amount of the cost-sharing pension plans' fiduciary net position. See Note <br />13 for additional information. <br />11. Change in Accounting Principles/New Accounting Pronouncement <br />The County implemented Governmental Accounting Standards Board (GASB) Statement No. 72, Fair <br />Value Measurement and Application. This statement addressed accounting and financial reporting <br />issues related to fair value measurements. It also provided guidance for applying fair value to certain <br />investments and disclosures related to all fair value measurements. <br />12. Unearned Revenues <br />Unearned revenues represent revenues, which are available but unearned. At September 30, 2016, the <br />total amount of unearned revenues reported on the statement of net position for the governmental <br />activities is $618,578 and for the business -type activities is $38,309. <br />58 <br />