Laserfiche WebLink
Elk River Municipal Utilities <br />Elk River, Minnesota <br />Notes to the Financial Statements <br />December 31, 2022 <br />Note 5: Change in Accounting Principles <br />For the year end December 31, 2022, the Utilities implemented Governmental Accounting Standards Board (GASB) <br />Statement No. 87, Leases. GASB Statement No. 87 enhances the relevance and consistency of information of the <br />government's leasing activities. It establishes requirements for lease accounting based on the principle that leases are <br />financings of the right to use an underlying asset. A lessee is required to recognize a lease liability and an intangible right <br />to use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. These <br />changes were incorporated in the Utilities' 2022 financial statements and had no effect on the beginning net position of <br />the Governmental Activities. <br />47 <br />130 <br />