Agenda Packets - 1985/09/16 - Laserfiche WebLink

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;. Property,. plant and_equiement_and deferred preoperating costs The company began con;+tructing the system to serve the rranrhi Se 3rng In 19R3 and ParnPd its first subscriber revenue in June, 1984 tend of preoperating period; beginning of prematurity period). The major construction phase of the system will be completed in November, 1985 (end or pre- maturity period). Additions to property, plant and equipment, including new customer installations, are recorded at cost and include materials, labor, overhead, capitalized interest and capitalized preoperating and deferred prematurity costs. The Company capitalized preoperating costs and, in accordance with the requirements of Statement No. 51 of the Financial Accounting Standards Board, defers certain costs during the prematurity period iprematurity cuatai. Capitalized preoperating costs are all those costs incurred by the Company prior to the first earned subscriber revenue. Doferred prematurity costs are comprised of a portion of the annual fixed costs of the cable system incurred during the prematurity period that relate to future operations. The proportion of such an.ival fixed costa to be deferred is based upon the monthly straight line a.tainment, throughout the It prematurity period, or estimated subscribers at the end of the prematurity period (subscriber ratio). During the prematurity period, depreciation is calculated by applying the subscriber ratio to the monthly depreciation amount based upon the expected cost of the system at the end of the prematurity period as depreciated over the estimated useful life of the assets. The System treats expenditures for maintenance and repairs as expense items which are reflected in the Statement of Operations in the period when such expenditures are incurred. Expenditures for betterments and major renewals are capitalized.