Ord 1993-037 - Laserfiche WebLink

Home Browse Search

)2' lìE City of San Marcos, Texas Exhibit 6 Notes to General Purpose Financial Statements (continued) September 30, 1992 1. Significant Accounting Policies (continued) All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair market value on the date donated. Special reporting treatments are also applied to governmental fund inventories to indicate that they do not represent "available spendable resources," even though they are a component of net current assets. Such amounts are offset by fund balance reserve accounts. Because of the spending measurement focus, expenditure recognition for governmental fund types excludes 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. They are instead reponed as liabilities in the. General umg-Term Debt Account Group. .. All proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and all liabilities (whether current or noncuITent) associated with their activity are included on their balance sheets. Their reponed fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net assets. Costs of issuance of proprietary fund long-term liabilities are capitalized and amortized over the life of the related liability. ' Depreciation of all exhaustible f!Xed assets used by Proprietary Funds is charged as an expense against their operations over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: Buildings 20 - 50 years Improvements 10 - 40 years Equipment 4 - 10 years -15-