FY2016 CCDOA Financial Report as of 6302016.pdf - page 57

CLARK COUNTY DEPARTMENT OF AVIATION
CLARK COUNTY, NEVADA
Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
44
Governmental Accounting Standards Board ("GASB") Statement No 72,
Fair Value Measurement and
Application
("GASB 72"), addresses accounting and financial reporting issues related to fair value
measurements and defines fair value as "the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date."
GASB 72 is effective for fiscal years beginning after June 15, 2015, and retroactive for all financial
statement periods presented. The determination of fair value is established through valuation
techniques which should be applied consistently using one or more of three approaches: (1) the
market approach, (2) the cost approach, and (3) the income approach. When using one or more of
the valuation techniques to determine the fair value of the asset or liability, the objective is to maximize
the use of relevant observable inputs and minimize the use of unobservable inputs. GASB 72 provides
three levels of inputs. Level 1 inputs are observable using quoted prices in active markets. Level 2 inputs
are observable for an asset or liability, either directly or indirectly, and include quoted prices for similar
assets or liabilities in active markets or identical or similar assets or liabilities not in active markets; inputs
other than quoted prices, such as interest rates or yield curves observable at commonly quoted
intervals; and market-corroborated inputs. Level 3 inputs are unobservable inputs for assets and
liabilities.
(c) Cash and Cash Equivalents, Investments
Cash and cash equivalents
The Department’s pooled funds and short-term investments, with original maturities of three months or
less from the date of acquisition, are considered to be cash equivalents. Refer to Note 2, "Cash and
Investments," for further details.
Investments
Investments, consisting of federal government obligations and repurchase agreements, guaranteed
investment certificates, and collateralized investment agreements, are stated at fair value. Investments
in the County’s pooled Treasurer’s cash account are adjusted to market. Refer to Note 2, "Cash and
Investments," for further details.
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