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ELK RIVER MUNICIPAL UTILITIES
<br /> ELK RIVER,MINNESOTA
<br /> NOTES TO FINANCIAL STATEMENTS
<br /> DECEMBER 31,2012 AND 2011
<br /> Note 6: CHANGE IN ACCOUNTING PRINCIPLE
<br /> During fiscal year 2012,the Utility implemented several new accounting pronouncements issued by the Government
<br /> Accounting Standards Board(GASB), including Statement No. 63, "Financial Reporting of Deferred Outflows of
<br /> Resources, Deferred Inflows of Resources, and Net Position" and Statement No. 65,"Items Previously Reported as
<br /> Assets and Liabilities". These standards required a retroactive implementation which resulted in the restatement of
<br /> beginning balances in the December 31, 2012 financial statements. Changes related to these standards are reflected in
<br /> the financial statements and schedules and related disclosures are included in Note I.
<br /> As a result of the restatement of beginning balances,the following schedule reconciles the previously reported December
<br /> 31,2010 balances to the December 31,2012 financial statements:
<br /> Net Position
<br /> December 31,2010 Net Position
<br /> as Previously January 1,2011
<br /> Fund Reported (1)Restatement as Restated
<br /> Enterprise
<br /> Electric $ 26,394,097 $ (114,775) $ 26,279,322
<br /> Water 21,188,987 (99,958) 21,089,029
<br /> Total $ 47,583,084 $ (214,733) $ 47,368,351
<br /> (I)Write-off of unamortized bond issuance cost balances at December 31,2010.
<br /> As a result of the restatement of beginning balances, the following schedule reconciles the previously reported December
<br /> 31,2011 balances to the December 31, 2012 financial statements:
<br /> Net Position
<br /> December 31,2011 Net Position
<br /> as Previously January 1,2012
<br /> Fund Reported (2)Restatement as Restated
<br /> Enterprise
<br /> Electric $ 27,716,105 $ (102,866) $ 27,613,239
<br /> Water 21,497,789 (87,648) 21,410,141
<br /> Total $ 49,213,894 $ (190,514) $ 49,023,380
<br /> (2)Write-off of unamortized bond issuance cost balances at December 31,2011.
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