Nhà nước của Arizona Sở sửa chữa Arizona Industries Correctional Thuyết minh báo cáo tài chính 30 Tháng 6, 2006 E. Các khoản phải thu Các khoản phải thu từ nhiều khách hàng chính phủ và phi chính phủ. Mức trợ cấp cho các tài khoản uncollectible là dựa trên đánh giá của ban quản lý của collectibility của các tài khoản. | State of Arizona Department of Corrections Arizona Correctional Industries Notes to Financial Statements June 30 2006 E. Accounts Receivable Accounts receivable are due from a variety of governmental and nongovernmental customers. The allowance for uncollectible accounts is based upon management s evaluation of the collectibility of the accounts. F. Inventories Inventories consist of raw materials work-in-process finished goods and crops. Inventories are recorded as assets when purchased along with the costs of manufacturing the merchandise intended for sale to customers and expensed when sold. Inventories are stated at cost using the first-in first-out method. G. Capital Assets Capital assets are reported at actual cost. Donated assets are reported at fair value at the time received. The capitalization thresholds are 1 000 for all capital assets. Depreciation of such assets is charged as an expense against operations. These assets are depreciated over their estimated useful lives using the straight-line method. The estimated useful lives are as follows Land improvements and buildings 15 to 40 years Building improvements 10 to 40 years Equipment 3 to 15 years H. Investment Income Investment income is composed of interest dividends and net changes in fair value of investments on ACI s portion of monies deposited with the State Treasurer. I. Compensated Absences Compensated absences consist of vacation leave earned by employees based on services already rendered. Employees may accumulate up to 320 hours of vacation if salaried or 240 hours if hourly depending on years of service but any vacation hours in excess of the maximum amount that are unused at year-end are forfeited. Upon termination of employment all unused and unforfeited vacation benefits are paid to employees. Accordingly vacation benefits are accrued as a liability in the financial statements. This is trial version State of Arizona Department of Corrections Arizona Correctional .
