2003-058 - Laserfiche WebLink

Home Browse Search

Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued G . Capital Assets Capital assets , which include property, plant, equipment, and infrastructure assets (e . g . , roads , bridges, right of ways , water and sewer distribution systems and similar items), are defined by the County as assets with an initial, individual cost of $ 750 or more and an estimated useful life in excess of one year. Except for roads and bridges constructed prior to October 1 , 1981 , assets are recorded at historical cost. Roads and bridges constructed prior to October 1 , 1981 are reported at estimated historical cost. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed . Interest incurred during the construction phase of capital assets of enterprise fund activities is included as part of the capitalized value of the assets constructed . The Board holds legal title for the capital assets used in the operations of the Board, Clerk of the Circuit Court, Property Appraiser, Supervisor of Elections and Tax Collector, and is accountable for them under Florida Law. Capital assets used by the Board's governmental funds are reported in the financial statements of the County. Capital assets of the Board 's enterprise and internal service funds are reported in the Proprietary Funds financial statements . Property, plant, and equipment of the Board 's enterprise and internal service funds, as well as the Solid Waste Disposal District, are depreciated using the straight line method over the following estimated useful lives : Assets Years Buildings and improvements 25 - 50 Machinery and equipment 3 - 10 Utility distribution systems 25 - 50 H. Capitalization of Interest Interest costs related to bond issues are capitalized during the construction period. These costs are netted against applicable interest earnings on construction fund investments . During the current period, the County did not have any capitalized interest. I. Unamortized Bond Costs Bond issuance costs and legal fees associated with the issuance of Proprietary Fund revenue bonds are amor- tized over the life of the bonds using the straight- line method of accounting . 216