2003-058 - Laserfiche WebLink

Home Browse Search

Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B . Measurement Focus And Basis Of Accounting - Continued Because of their spending measurement focus , expenditure recognition for governmental 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 fund liabilities . Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets . The proceeds of long-term debt are recorded as an other financing source rather than as a fund liability. . However, debt service expenditures , as well as expenditures related to compensated absences and claims and judgements , are recorded only when payment is due . Proprietary Funds The County ' s enterprise funds and internal service funds are proprietary funds . In the fund financial statements , proprietary funds are presented using the accrual basis of accounting . Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered . In the fund financial statements , proprietary funds are presented using the economic resources measurement focus . This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets . Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets . The Board applies all GASB pronouncements as well as all FASB Statements and Interpretations , APB Opinions and Accounting Research Bulletins , issued on or before November 30, 1989 , which do not conflict with or contradict GASB pronouncements . Proprietary fund operating revenues , such as charges for services , result from exchange transactions associated with the principal activity of the fund . Exchange transactions are those in which each party receives and gives up essentially equal values . Nonoperating revenues , such as subsidies, taxes, and investment earnings, result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the fund financial statements , rather than reported as an expenditure . Proceeds of long-term debt are recorded as a liability in the fund financial statements , rather than as an other financing source . Amounts paid to reduce long-term indebtedness are reported as a reduction of the related liabilities , rather than as an expense . C . Basis of Presentation GASB Statement 34 sets forth minimum criteria (percentage of the assets , liabilities , revenues or expenditures/ expenses of either fund category and the governmental and enterprise combined) for the determination of major funds . The County has used GASB 34 minimum criteria for major fund determination and has also electively disclosed funds which either had debt outstanding or specific community focus as major funds . The non- major funds are combined in a column in the fund financial statements and detailed in the combining section. 38