District of Lake Country Notes to Financial Statements For the year ended December 31 , 2015
2 . Significant accounting policies ( continued )
Revenue recognition Taxes are recognized as revenue in the year they are levied . Through the BC Assessment appeal process property assessment values may be adjusted through a supplementary roll . Decreases or increases of taxation as a result of these re-assessments are recognized at the time they are awarded .
Fees and charges for protective , transportation , environmental , development , community and customer services , water and sewer fees are recorded on the accrual basis and recognized as earned , which is usually when services are provided .
Investment income is recorded on the accrual basis and recognized when earned .
Government transfers are recognized as revenue in the period that the transfer is authorized , eligibility criteria , if any , have been met by the District , and a reasonable estimate of the amount to be received can be made .
Developer contributions are recognized as revenue during the period in which the related costs are incurred or when infrastructure is turned over to the District .
Expenses Expenses are recorded in the period in which the goods or services are acquired and a liability is incurred .
Use of estimates The preparation of the financial statements 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 revenue and expenses during the reporting period . Significant areas requiring the use of management estimates relate to the determination of employee benefit plans , allowance for doubtful accounts receivable , provision for contingencies and tangible capital assets estimated useful life and related amortization . Actual results could differ from management ’ s best estimates as additional information becomes available . Adjustments , if any , will be reflected in the financial statements in the period that the change in estimate is made , as well as in the period of settlement if the amount is different .
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