AgdaPkt 2002-01-14 - Laserfiche WebLink

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REDEVELOPMENT AGENCY OF THeE CITY OF REDWOOD CITY Notes to Component Unit Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I ACCOUNT GROUPS General Fixed Asset Account Group - This account group is used to account for all fixed assets owned by the Agency. General Long-Term Debt Account Group - This account group is used to account for all long-term debt of the Agency. C. Measurement Focus All governmental funds are accounted for on a spending or financial flow measurement focus which means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance is their net current assets, which is considered only to be a measure of available spendable resources. Governmental fund operating statements present a suramary of sources and uses of available spendable resources during a period by presenting increases and decreases in net em'rent assets. Because of their spending measurement focus, governmental funds exclude fixed assets and noncurrent liabilities. Instead, these assets and liabilities are reported in the General Fixed Assets Account Group and the General Long-Term Debt Account Group. These account groups measure only £mancial position; they are not funds and they do not measure results of operations. They maintain accounting control over the Agency's governmental fund fixed assets and Agency debt which will be repaid by governmental funds. In those cases when a govm-nmental fund records a long-term receivable or other non-current asset, an offsetting credit is made to deferred revenue or undesignated fund balance is reduced to reflect the fact that this amount is not yet available. All fixed assets are valued at historical cost or est/mated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. Fixed assets acquired under lease or purchase agreements are capitalized when the Agency accumulates an ownership equity m the assets acquired. Public domain ("inlSastmcture") general fixed assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, have not been capitalized. No depreciation has been provided on general fixed assets. D. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. These funds' revenues are recognized when they become measurable and available as net current assets. Measurable means the amount of the transaction can be determined and available means the amount is collectible within the current period or soon enough thereafter (generally sixty days) to be used to pay liabilities of the current period. Amounts which could not be measured or were not available were not accrued as revenue in the current fiscal year.