VLAWMO Annual Financial Report 2007

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,l A �A Vadnais Lake Area Water Management Organization March 19, 2008 Page 11 • If the aggregate actuarial cost method is used to determine the annual required contribution of the employer (ARC), notes to financial statements should disclose the funded status of the plan, and a schedule of funding progress should be presented as RSI, using the entry age actuarial cost method. Plans and employers also should disclose that the purpose of doing so is to provide information that serves as a surrogate for the funded status and funding progress of the plan. • Notes to financial statements should include a reference linking the funded status disclosure in the notes to financial statements to the required schedule of funding progress in RSI. • If applicable, notes to financial statements should disclose legal or contractual maximum contribution rates. In addition, if relevant, they should disclose that the maximum contribution rates have not been explicitly taken into consideration in the projection of pension benefits for financial accounting measurement purposes. • If an actuarial assumption is different for successive years, notes to financial statements should disclose the initial and ultimate rates. GASB Statement No. 51- Accounting and Financial Reporting for Intangible Assets This statement was issued in June 2007 and is effective for periods beginning after June 15, 2009. The new standard characterizes an intangible asset as an asset that lacks physical substance, is nonfinancial in nature, and has an initial useful life extending beyond a single reporting period. Examples of intangible assets include easements, computer software, water rights, timber rights, patents, and trademarks. This statement requires that intangible assets be classified as capital assets (except for those explicitly excluded from the scope of the new standard, such as capital leases). Relevant authoritative guidance for capital assets should be applied to these intangible assets. The statement provides additional guidance that specifically addresses the unique nature of intangible assets, including: • Requiring that an intangible asset be recognized in the statement of net assets only if it is considered identifiable • Establishing a specified -conditions approach to recognizing intangible assets that are internally generated (for example, patents and copyrights) • Providing guidance on recognizing internally generated computer software • Establishing specific guidance for the amortization of intangible assets. 952.835.9090 • Fax 952.835.3261 www.aemcpas.com