Laserfiche WebLink
CITY OF PLEASANTON <br /> <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />FOR THE YEAR ENDED JUNE 30, 2022 <br /> <br />  <br />Note 1: Summary of Significant Accounting Policies (Continued) <br /> <br />o. Use of Restricted and Unrestricted Net Position/Fund Balance <br /> <br />When an expense is incurred for purposes for which both restricted and unrestricted <br />net position and fund balance are available, the City’s policy is to apply restricted net <br />position or fund balance first. <br /> <br />p. Use of Estimates <br /> <br />The preparation of the basic financial statements in conformity with generally accepted <br />accounting principles requires management to make estimates and assumptions. These <br />estimates and assumptions affect the reported amounts of assets, deferred outflows of <br />resources, liabilities, deferred inflows of resources, and the disclosures of contingent assets <br />and liabilities. In addition, estimates affect the reported amount of expenses. Actual results <br />could differ from these estimates and assumptions. <br /> <br />q. Fair Value Measurements <br /> <br />Fair value is defined as the price that would be received to sell an asset or paid to transfer <br />a liability in an orderly transaction between market participants at the measurement date. <br />The City categorizes its fair value measurements within the fair value hierarchy established <br />by GAAP. The fair value hierarchy categorizes the inputs to valuation techniques used to <br />measure fair value into three levels based on the extent to which inputs used in measuring <br />fair value are observable in the market. <br /> <br />Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or <br />liabilities. <br /> <br />Level 2 inputs are inputs – other than quoted prices included within level 1 – that are <br />observable for an asset or liability, either directly or indirectly. <br /> <br />Level 3 inputs are unobservable inputs for an asset or liability. <br /> <br />If the fair value of an asset or liability is measured using inputs from more than one level <br />of the fair value hierarchy, the measurement is considered to be based on the lowest <br />priority level input that is significant to the entire measurement. <br /> <br />r. Implementation of New Governmental Accounting Standards Board (GASB) <br />Pronouncements <br /> <br />During the year ended June 30, 2022, the City adopted the following new accounting <br />standard issued by the Governmental Accounting Standards Board (GASB): <br /> <br />GASB Statement No. 87 Leases enhances usefulness and comparability of financial <br />statements among governments by requiring lessees and lessors to report leases using a <br />single model. <br />63