Reso 2011-053 Attachment - Laserfiche WebLink

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City of San Leandro Notes to Basic Financial Statements For the year ended June 30, 2010 NOTE 1- SIGNIFICANT ACCOUNTING POLICIES, Continued M. Net Assets, continued In Fund Financial Statements, reservations of fund balances for governmental funds are created to either satisfy legal covenants, including State laws, that require a portion of the fund equity be segregated or identify the portion of the fund equity not available for future expenditures. 1 N. Implementation of New GASB Pronouncements In June 2007, GASB issued Statement No. 51, "Accounting and Financial reporting for Intangible Assets. " This ' Statement establishes accounting and financial requirements for intangible assets including easements, water rights, timber rights, patents, trademarks, and computer software. The requirements for this Statement are effective for financial statements for periods beginning after June 15, 2009. The adoption of GASB Statement No. 51 did not have an impact on the financial position of the reporting entity. In June 2009, GASB has issued Statement No. 53,"Accounting and Financial Reporting for Derivative Instruments." ' This statement establishes standards for accounting and financial reporting for all state and local governments that enter into derivative instruments. The requirements are effective for financial statements for periods beginning after June 15, 2009. GASB Statement No. 53 is effective immediately and did not have any impact on the financial statements. �I In June 2009, GASB issued Statement No. 58, "Accounting and Financial Reporting for Chapter 9 Bankruptcies." This Statement establishes accounting and financial reporting guidance for government that have petitioned for protection from creditors by filing for bankruptcy under Chapter 9 of the United State Bankruptcy code. The requirements of this Statement are effective for financial statements for periods beginning after June 15, 2009. This statement had no impact on the financial statements. In March 2009, the GASB issued Statement No. 54, "Fund Balance Reporting and Governmental Fund Type Definitions. " The objective of this statement is to enhance the usefulness of fund balance information by providing the existing governmental type definitions. This statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The requirements of this statement are effective for the financial statements for periods beginning after June 15, 2010. Early implementation is encouraged. Application to this statement is effective for the City's fiscal year ending June 30, 2011. The City is currently evaluating the impact of this statement. In December 2009, GASB issued Statement No. 57, "OPEB Measurements by Agent Employers and Agent Multiple - Employer Plans", which expands the use of alternative measurement method to an agent employer government that has an individual -employer OPEB plan with fewer than 100 total plan members. The Statement also provides guidance about the frequency and timing measurements must be coordinates with the reporting needs of the agent multiple -employer OPEB plan itself. The provisions of this Statement related to the use and reporting of the alternative measurement method were effective immediately upon the Statement's issuance in December 2009. The provisions related to the frequency and timing of measurements are effective for actuarial valuations first used to report funded status information in OPEB plan financial statement for periods beginning after June 15, 2011. The City is currently evaluating the impact of this statement. 47