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� <br />� Swan's Nest Metropolitan District <br />Notes to Financial Statements <br />December 31, 2008 <br />1. Summary of Significant Accounting Poticies (Continued) <br />� Basis of Presentation and Accounting (Continued) <br />The District has elected to implement the provisians of GASB Statement <br />� Na. 20 with regard to the appfication af Financial Accounting Standards <br />Board (FASB} Pronouncements to its proprietary funds. In accordance <br />with the provisions of GASB Statement No. 20, the District has elected nat <br />� to apply those FASB Statements and Interpretations issued after <br />November 30, 1989. <br />Enterprise funds may be used to account for aperations #hat are financed <br />and operated in a manner similar to business enterprises where the intent <br />of the governing body is that the costs (expenses, incfuding depreciation) <br />of providing goods and services to the general public on a continuing <br />basis be financed or recovered primarily through user charges; or where <br />the governing body has decided that periodic determination of revenues <br />earned, expenses incurred, and/or net income is appropriate for capital <br />maintenance, public policy, rnanagement contral, accountabifity, or other <br />purposes. <br />� Operating revenues and expenses are distinguished fram non-operating <br />items in the statement of revenues, expenses and changes in net assets. <br />Operating revenues and expenses result from providing services in <br />� connection with the District's ongoing aperations. Principal operating <br />�evenues of the District are charges to customers for water service. All <br />revenues and expenses not meeting this definition are reported as nan- <br />� operating revenues and expenses. <br />Estimates <br />The District uses estimates and assumptions in preparing its financial <br />statements in accordance with generally accepted accounting principies. <br />Those estimates and assumptions affect the reported amounts of assets <br />and liabilities, the disclosure of contingent assets and liabilities, and the <br />reported revenues and expenses. Actual resutts cauld vary from the <br />estimates that were used. <br />Measuremen# focus <br />� The District's capital maintenance measurement focus is all financial and <br />economic resources. All assets and liabilities associated with the Distri�t's <br /> ,� operations are included on the Statement of Net Assets. Depreciation is <br />reparted as a cost of operations. <br />� <br />0 <br />� <br />