Laserfiche WebLink
INDIAN RIVER COUNTY, FLORIDA <br />NOTES TO FINANCIAL STATEMENTS - CONTINUED <br />Year Ended September 30, 1990 <br />1. Summary of Significant Accounting Policies - Continued: <br />I. Property, Plant and Equipment - Continued <br />(2) Property, plant and equipment of the Proprietary Fund types are recorded <br />at cost. Donated property, plant and equipment are capitalized at their <br />fair market value at the time received. Depreciation is provided using <br />the straight-line method over the estimated useful lives of the various <br />classes of depreciable assets. The estimated useful lives of the various <br />classes of depreciable assets are as follows: <br />Assets <br />Building and improvements <br />Machinery and equipment <br />Utility distribution systems <br />Years <br />25 - 40 <br />3 - 10 <br />25 - 50 <br />J. Capitalization of Interest - Interest costs related to bond issues are capital- <br />ized during the construction period. These costs are netted against applicable <br />interest earnings on construction fund investments. During the current period, <br />the Water and Sewer System Enterprise Fund incurred interest expense during the <br />construction period totaling $498,333. Related interest earnings on construc- <br />tion fund investments totaled $138,630 for net capitalized interest of $359,703. <br />K. Unamortized Bond Costs - Bond issue costs and legal fees associated with the <br />issuance of Proprietary Fund revenue bonds are amortized over the life of the <br />bonds using the straight-line method of accounting. <br />L. Unamortized Bond Discount - Bond discount associated with the issuance of <br />Proprietary Fund revenue bonds are amortized according to the interest method, <br />which results in a constant rate of interest being applied to the amount out- <br />standing at any given time. For financial reporting, unamortized bond discount <br />is netted against applicable long-term debt. <br />M. Intangible Assets - Land use rights purchased by the Water and Sewer System Fund <br />from the Golf Course Fund for irrigating the golf course with treated effluent <br />are being amortized using the straight-line method over the estimated useful <br />life of 20 years. <br />N. Deferred Revenues - Deferred revenues reported in applicable Governmental Fund <br />Types represent unearned revenues or revenues which are measurable but not <br />available and, in accordance with the modified accrual basis of accounting, are <br />reported as deferred revenues. The deferred revenues will be recognized as <br />revenue in the fiscal year they are earned or become available. <br />19 <br />