Reso 2010-1605 - Laserfiche WebLink

Home Browse Search

SHORELINE FOUNDATION,INC. NOTES TO FINANCIAL.STATEMENTS FOR THE YEAR ENDED DECEMBER 31;2009 l.. GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICES General-Shoreline Foundation, Inc. ("The Company") was incorporated in 1986 pursuant to the laws of the State of Florida to engage in the maritime construction business. Its principal activities are the installation,maintenance, and repair of sea walls,docks, pilings, and related maritime services, along with construction of embankment stabilization on various interstate highways. Their customers primarily consist of developers,contractors, government agencies and private owners of existing waterfront properties in the United States and the Caribbean. The work performed by the Company is substantially under fixed-price contracts modified by incentive provisions. The Company follows the practice of filing statutory liens on all construction projects where collection problems are anticipated. The liens serve as collateral for accounts receivable. Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition—The Company recognizes revenue on lone-term construction contracts using the percentage of completion method, measured by the cost-tocost method- Revenue on short-term and time and material contracts are recognized currently as the work is performed. Contract costs include all direct material and labor costs and those indirect costs related to contract performance,such as indirect labor; supplies, tools and repairs. Selling, general and administrative costs are charged to expenses as incurred. Provisions for estimated losses on uncompleted.contracts are made in the period in which such losses are determined. Changes in job performance,job conditions,and estimated profitability may result in revisions to costs and incbme, which are recognized in the period in which the revisions are determined. The asset, "Costs and estimated earnings in excess of billings on uncompleted contracts", represents revenues recognized in excess of amounts billed. The liability. "Billings in excess of costs and estimated earnings on uncompleted contracts",represents billings in excess of revenues recognized. Significant Customers -During the year ended December 31, 2009. the Company derived revenues of approximately 59,862.000 from one customer. In addition, included in accounts receivable-trade as of December 31;2009 is approximately$2,552,000 from such customer. Cash Equivalents-The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. .As of December 31,2009,the Company does not have any cash equivalents.