HomeMy WebLinkAboutNC Comprehensive Report (Finance) (31)CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Summary of Significant Accounting Policies, (Continued)
These basic financial statements are presented on an "economic resources"
measurement focus and the accrual basis of accounting. Accordingly, all of the
City's assets and liabilities, including capital assets, as well as infrastructure
assets, and long-term liabilities, are included in the accompanying Statement of
Net Assets. The Statement of Activities presents changes in net assets. Under the
accrual basis of accounting, revenues are recognized in the period in which they
are earned while expenses are recognized in the period in which the liability is
incurred.
Certain types of transactions are reported as program revenues for the City in
three categories:
• Charges for services
• Operating grants and contributions
• Capital grants and contributions
Certain eliminations have been made as prescribed by GASB Statement No. 34 in
regards to interfund activities, payables and receivables. All internal balances in
the Statement of Net Assets have been eliminated except those representing
balances between the governmental activities and the business -type activities,
which are presented as internal balances and eliminated in the total primary
government column. In the Statement of Activities and Changes in Net Assets,
internal service fund transactions have been eliminated; however, those
transactions between governmental and business -type activities have not been
eliminated. The following interfund activities have been eliminated:
• Due to/from other funds
• Loans receivable/related deferred revenue
• Advances to/from other funds
• Transfers in/out
The City applies all applicable GASB pronouncements (including all NCGA
Statements and Interpretations currently in effect) as well as the following
pronouncements issued on or before November 30, 1989, to the business type
activities, unless those pronouncements conflict with or contradict GASB
pronouncements: Financial Accounting Standards Board (FASB) Statements and
Interpretations, Accounting Principles Board (APB) Opinions, and Accounting
Research Bulletins (ARB) of the committee on Accounting Procedure. The City
does not follow FASB Statements and Interpretations issued after November 30,
1989.
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