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6.G. - PaRecTwoocT$i7 <br />City <br />Notes to the Basic Financial Statements <br />For the fiscal year ended June 30, 2018 <br />NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br />M. Use of Estimates <br />The preparation of the basic financial statements in conformity with generally accepted accounting <br />principles requires management to make estimates and assumptions. These estimates and assumptions <br />affect the reported amounts of assets and liabilities and the disclosure of contingent assets and <br />liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from <br />these estimates and assumptions. <br />N. Pensions <br />For purposes of measuring the net pension liability and deferred outflows/inflows of resources related <br />to pensions, and pension expense, information about the fiduciary net position of the City's California <br />Public Employees' Retirement System (CaIPERS) plans (Plans) and additions to /deductions from the <br />Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS. <br />For this purpose, benefit payments (including refunds of employee contributions) are recognized when <br />due and payable in accordance with the benefit terms. Investments are reported at fair value. <br />O. Other Postemployment Benefits (OPEB) <br />For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of <br />resources related to OPEB, and OPEB expense, information about the fiduciary net position of the <br />Authority's plan (OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position <br />have been determined on the same basis. For this purpose, benefit payments are recognized when <br />currently due and payable in accordance with the benefit terms. Investments are reported at fair value. <br />Generally accepted accounting principles require that the reported results must pertain to liability and <br />asset information within certain defined timeframes. For this report, the following timeframes are used: <br />Valuation Date: June 30, 2017 <br />Measurement Date: June 30, 2017 <br />Measurement Period: July 1, 2016 to June 30, 2017 <br />P. Implementation of New GASB Pronouncements <br />In FY 2017-18 the City adopted the following new accounting standards in order to conform to the <br />following Governmental Accounting Standards Board Statements: <br />GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than <br />Pensions - The objective of this statement is to address reporting by governments that provide other <br />postemployment benefits (OPEB) to their employees and for governments that finance OPEB for <br />employees of other governments. The City restated its beginning net position as part of implementation <br />of this statement. <br />GASB Statement No. 81, Irrevocable Split -Interest Agreements — The objective of this statement is to <br />improve accounting and financial reporting for irrevocable split -interest agreements by providing <br />recognition and measurement guidance for situations in which a government is a beneficiary of the <br />agreement. The requirements of this statement did not apply to the City for the current fiscal year. <br />45 251 <br />