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WAMM-9WIM <br />TO FINANCIAL-gaMENTS (C taINUED). <br />R DECEMBE,R 11, 1987 <br />l ' <br />Note 1 _2ummary of_Sigal ..p Accounting FoliciP,ljCan inUal <br />C. Basis of Accountir3 <br />Basis of accounting refers to when revenues and expenditures or expenses <br />are recognized in the accounts and reported in the financial statements. <br />Basis of accounting relates to the timing of the measurements made <br />regardless of the measurement focus applied. <br />The operating fund is accounted for using the modified accrual basis of <br />accounting. Reven"-s are recognized when they become measurahle and <br />available. Substantially all sources of revenue are accrued. <br />Expenditures are generally recognized under the modified accrual basis of <br />accounting when the related fund liability is incurred. <br />D. Assets, Liabilities and Fund Equity <br />Investments - Investments are stated at cos_, which approximates market. <br />Interest on investments is recorded whan it is earned and available. <br />Fired Assets/Furniture and Equipment - Fixed assets are valued at <br />historical cost. <br />E. Revenue and Expenditures <br />Prior to the complete installation of the cable system in the individual <br />cities, the cable operator reimbursed the cities for their contributions <br />through the Commission by advance payments of franchise fees. Now that <br />the system is installed, the Commission's revenue is essentially made up <br />• of member cities' contributions. <br />F. Total Colurns on Combined Statements <br />Total columns oa the combined statements are captioned memorandum anly to <br />indicate that they are presented only to facilitate financial analysis. <br />Data in these columns do no: present financial position, results of <br />operations, or cha-lgas in financial position in conformity with generally <br />accepted accounting principles. <br />5 <br />