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CITY OF ELK RIVER, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 2003 <br /> <br />Note 4. OTHER INFORMATION - CONTINUED <br /> <br />G. Change in Accounting Principle and Prior Period Adjustments <br /> <br />During fiscal year 2003, the City implemented the following new accounting pronouncements issued by the Government <br />Accounting Standards Board (GASB): <br /> <br />· GASB Statement No. 34, "Basic Financial Statements - and Management's Discussion and Analysis -for State <br /> and Local Governments ". <br />· GASB Statement No. 37, "Basic Financial Statements - andManagement's Discussion andAnalysis -for State <br /> and Local Governments: Omnibus". <br />· GASB Statement No. 38, "Certain Financial Statement Note Disclosures", paragraphs 6 through 11. <br /> <br />Because of implementation of the new standards, an adjustment is required for the December 31, 2002, carry forward <br />(net asset) balance of the governmental funds. The following schedule reconciles the January 1, 2003 balance to the <br />December 31, 2002 net asset balance using the new accounting standards. <br /> <br />Fund balance - December 31, 2002 <br /> <br />$ 27,815,843 <br /> <br />Adjustments: <br /> Net book value of capital assets <br /> Bonds payable, net <br /> Contract for deed <br /> Accrued interest <br /> Compensated absences payable <br /> Deferred revenue <br /> Prior period adjustment - financial obligation omitted in 2002 <br /> <br /> 70,537,581 <br />(23,344,150) <br /> (148,808) <br /> (408,681) <br /> (394,399) <br /> 8,447,979 <br /> (360,728) <br /> <br />Total net assets as restated - January 1, 2003 <br /> <br />$ 82.144.638 <br /> <br />As described in Note 3C, a prior period adjustment was recorded in the enterprise funds to recognize the effects of a <br />higher capitalization threshold and record additional assets as a result of GASB 34 implementation. <br /> <br />55 <br /> <br /> <br />