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CABARRUS COUNTY TOURISM AUTHORITY <br /> d/b/a CABARRUS COUNTY CONVENTIONAND VISITORS BUREAU <br /> NOTES TO FINANCIAL STATEMENTS <br /> For the Year Ended June 30, 2016 <br /> NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd) <br /> Assets,Liabilities and Fund Equity (cont'd) <br /> Carolina. Also, the Bureau may establish time deposit accounts such as money market <br /> accounts, and certificates of deposit. <br /> 2. Cash and Cash Equivalents <br /> All bank deposits are essentially demand deposits and are considered cash and cash <br /> equivalents. <br /> 3. Accounts Receivable <br /> Accounts receivable are stated at the amount management expects to collect from <br /> outstanding balances. No provision for bad debt is included in these financial <br /> statements because the Bureau considers all accounts receivable to be collectible at <br /> June 30, 2016. <br /> 4. Capital Assets <br /> All acquisitions of capital assets and all expenditures for repairs, maintenance, <br /> renewals and betterments that materially prolong the useful lives of assets are <br /> capitalized. Maintenance and repairs that do not improve or extend the useful lives of <br /> the respective assets are expensed currently. Capital assets are carried at cost. <br /> Donations of capital assets are recorded as support at their estimated fair value as <br /> established by the donor. Depreciation is computed using the straight-line method as <br /> follows: <br /> Computer Equipment 5 years <br /> Vehicles 5 years <br /> Leasehold Improvements 15 years <br /> Office Equipment 5 years <br /> Other fixed assets 5 years <br /> 5. Deferred outflows/inflows of resources <br /> In addition to assets, the statement of financial position will sometimes report a <br /> separate section for deferred outflows of resources. This separate financial statement <br /> element, Deferred Outflows of Resources, represents a consumption of net position <br /> that applies to a future period and so will not be recognized as an expense or <br /> expenditure until then. The Bureau has one item that meets this criterion, <br /> contributions made to the pension plan in the 2016 fiscal year. In addition to <br /> liabilities, the statement of financial position will sometimes report a separate section <br /> for deferred inflows of resources. This separate financial statement element, Deferred <br /> Inflows of Resources, represents an acquisition of net position that applies to a future <br /> period and so will not be recognized as revenue until then. The Bureau has one item <br /> -Continued- <br /> 19 <br /> Attachment number 1 \n <br /> 1-5 Page 162 <br />