Lewis County, New York

A.       Summary of Significant Accounting Policies - contd.:

Cash and Cash Equivalents

For purposes of the Statements of Cash Flows, the Agency considers all unrestricted highly 
liquid investments with an initial maturity of three months or less to be cash equivalents.

Capital Assets

Capital assets are recorded at cost if purchased; or at fair market value on the date of gift, if 

donated.  The Agency does not have a formal capitalization policy.  Expenditures for major 
renewals and betterments that extend the useful life of an asset are capitalized.  Expenditures
for maintenance and repairs are charged to expense as incurred

Allowance for Doubtful Accounts

The Agency has elected not to establish an allowance for doubtful accounts since all receivables are deemed collectible.  An allowance will be established when an event occurs in the future that would necessitate a reserve.

Use of FASB Pronouncements

The County of Lewis Industrial Development Agency has elected to apply all FASB pronouncements issued after November 30, 1989, that do not conflict with or contradict GASB pronouncements and that are developed for business enterprises.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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.

Depreciation

Depreciation is computed using the straight-line method.  Equipment and furniture and fixtures are depreciated over their estimated useful lives ranging from five to seven years.  Land improvements and leasehold improvements are depreciated over the estimated useful life of fifteen years.

Accumulated depreciation consists of the following:



May 31



2005
2004
Furniture and fixtures       $  1,066
  $  4,838
Equipment
          2,722
     16,730
Land improvements
          1,801
       1,534
Leasehold improvements
         1,770
       1,287

      $  7,359
                    $24,389



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