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S-4/A
AVALON CABLE OF MICHIGAN INC/ filed this Form S-4/A on 05/28/1999
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                                  TACONIC CATV
                   (A Component OF Taconic Technology Corp.)

                   NOTES TO FINANCIAL STATEMENTS--(Continued)

 (e) Use of Estimates

   The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount 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.

 (f) Other Assets

   Other assets primarily consist of fees paid to acquire franchises and are
being amortized over the life of the franchise or extensions (up to 15 years).

 (g) Recent Accounting Pronouncements

   In March 1998, the Accounting Standards Executive Committee (AcSEC) of the
AICPA issued Statement of Position 98-1, "Accounting for the Costs of Computer
Software Developed or Obtained for Internal Use" (SOP 98-1). SOP 98-1 provides
guidance on accounting for the costs of computer software developed or obtained
for internal use. SOP 98-1 is effective for financial statements for fiscal
years beginning after December 15, 1998. Management does not anticipate that
the adoption of this statement will have a material effect on the financial
statements.

   In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities," which establishes accounting and reporting
standards for derivative instruments, including certain derivative instruments
embedded in other contracts, and for hedging activities. This Statement is
effective for all fiscal quarters of fiscal years beginning after June 15,
1999. Management does not anticipate that the adoption of this Statement will
have a material effect on the financial statements.

   In June 1998, the Accounting Standards Executive Committee (AcSEC) of the
AICPA issued Statement of Position 98-5, "Reporting on the Costs of Start-up
Activities" (SOP 98-5). SOP 98-5 requires that the costs of start-up activities
including organizational costs, be expensed as incurred. SOP 98-5 is effective
for financial statements for fiscal years beginning after December 15, 1998.
Management does not anticipate that the adoption of this Statement will have a
material effect on the financial statements.

(3) Property and Equipment

   Property and equipment is summarized as follows:


<TABLE>
<CAPTION>
                                                 December 31,        March 31,
                                            -----------------------  ----------
                                               1997         1998        1999
                                            -----------  ----------  ----------
<S>                                         <C>          <C>         <C>
Trunk and distribution system.............. $ 3,360,169   3,358,529   3,369,221
Central equipment..........................     484,217     511,104     512,211
Subscriber devices.........................     590,576     636,550     643,396
Converters.................................     448,181     443,781     443,361
Miscellaneous..............................      34,263      34,263      34,263
                                            -----------  ----------  ----------
                                              4,917,406   4,984,227   5,002,452
Less accumulated depreciation..............  (2,886,978) (3,292,052) (3,395,484)
                                            -----------  ----------  ----------
  Property and equipment, net.............. $ 2,030,428   1,692,175   1,606,968
                                            ===========  ==========  ==========
</TABLE>


                                     F-106