AgdaPkt 2012-01-09 - Laserfiche WebLink

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6.1. B. - Page 62 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES �CONTINUED� The City has assigned the useful lives listed as follows to capital assets: Buildings 20-50 Years Storm Drains 40 Years Traffic Signals 20 Years Improvements 33-60 Years Bridges 30 Years Streets 20 Years Equipment 2-15 Years Parks 25 Years K. Interfund Transactions Interfund transactions are reflected as loans, services provided or used, reimbursements, or transfers. Loans reported as receivables and payables are referred to as either "due to/from other funds" (the current portion of interfund loans) or "advances to/from other funds" (the noncurrent portion of interfund loans) as appropriate and are subject to elimination upon consolidation. Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by nonspendable fund balance in the applicable governmental funds to indicate that they are not in spendable form. Services provided or used, deemed to be at marl<et or near market rates, are treated as revenues and expenditures or expenses. Reimbursements occur when the funds responsible for particular expenditures or expenses repay the funds that initially paid for them. Such reimbursements are reflected as expenditures or expenses in the reimbursing fund and reductions to expenditures or expenses in the reimbursed fund. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation. L. Use of Estimates The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions. M. Implementation of New GA58 Pronouncements In 2011 the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statement: GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions — the Statement establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental fund types. 36