Agenda Package - City of Vernon

THE CORPORATION OF THE CITY OF VERNON
Notes to the Consolidated Financial Statements
Year Ended December 31, 2008
1. Significant Accounting Policies:
a) Basis of Accountino:
The consolidated financial statements of the City of Vernon are prepared by
management in accordance with local government accounting standards
established by the Public Sector Accounting Board ("PSAB') of the Canadian
lnstitute of Chartered Accountants. ln line with the standards, the resources and
operations of the City are segregated into various funds for accounting and
financial reporting purposes, each being treated as a separate enti$ with
responsibility for the stewardship of the assets allocated to it. The accrual
method for reporting revenues and expenses has been used.
b) Basis of Consolidation:
The consolidated statements include all funds of the Gity and the Wholly-Owned
Subsidiaries. lnter-fund revenues, expenses, assets, and liabilities have been
eliminated.
c) Measurement Uncertainty:
The preparation of financial statements in conformi$ with Canadian generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the date
of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
d) Tanoible CaoitalAssets:
Tangible capital assets are recorded at cost and are not subject to amortization.
Donated or contributed tangible capitals assets are recorded at fair market value
at the time of transfer.
el Prooertv Held for Resale:
0
Property held for resale is valued at the lower of cost and net realizable value.
Costs of inventory include the original land costs and design, engineering and
other related costs associated with holding the property.
Debt Charges:
Debt principal payments are charged against current operating revenue in the
periods in which they are paid. lnterest is recorded on an accrued basis,
o) Deferred Charoes:
Defened charges are comprised of levied and unused Development Cost
Charges; Sidewalk Gifting funds; Foothills/Silver Star Road Development funds;
and Gas Tax / Public Transit transfer payments, These funds are recorded as
revenue in the year they are used to fund tangible capital asset additions or
eligible operating expenditures,
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