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CAPITAL ASSET GUIDE <br /> <br />Introduction <br /> <br />For fiscal year ending December 31, 2003, the City of Elk River will be required to <br />implement Governmental Accounting Standards Board (GASB) Statement No. 34, <br />Basic Financial Statements - and Management's Discussion and Analysis - for <br />State and Local Governments. Statement No. 34 establishes new financial <br />reporting requirements for state and local governments throughout the United <br />States. When implemented, it will create new information and will restructure <br />much of the information that governments have presented in their annual reports in <br />the past. The intent of these new requirements is to make annual reports more <br />comprehensive and easier to understand and use. <br /> <br />Two key implementation challenges the new reporting model presents are <br />infrastructure reporting and depreciation accounting. Statement No. 34 requires <br />governments to report general infrastructure assets and depreciate general <br />governmental capital assets over their estimated useful lives. <br /> <br />While this document is not all encompassing, it has been prepared to provide <br />general guidance on implementing the new reporting requirements in regards to <br />capital assets for financial reporting purposes only. The primary objectives of <br />financial reporting generally pertain to valuation, allocation, presentation and <br />disclosure; therefore, this policy should not be used for property control purposes. <br /> <br />This policy will take effect January 1, 2003. <br /> <br /> <br />