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SEC Filings

S-4/A
AVALON CABLE OF MICHIGAN INC/ filed this Form S-4/A on 07/22/1999
Entire Document
 
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                    AMRAC CLEAR VIEW, A LIMITED PARTNERSHIP
 
                   NOTES TO FINANCIAL STATEMENTS--(Continued)
 
 
 Property and Equipment
 
   Property and equipment is stated at cost. Initial subscriber installation
costs, including material, labor and overhead costs, are capitalized as a
component of cable plant and equipment. Depreciation is computed for financial
statement purposes using the straight-line method based upon the following
lives:
 

<TABLE>
      <S>                                                          <C>
      Cable plant and equipment................................... 10 years
      Office furniture and equipment.............................. 5 to 10 years
      Vehicles.................................................... 6 years
</TABLE>

 
 Financial Instruments
 
   The Partnership estimates that the fair value of all financial instruments
at May 28, 1998 does not differ materially from the aggregate carrying values
of its financial instruments recorded in the accompanying balance sheet.
 
 Income Taxes
 
   The Partnership is not subject to federal and state income taxes.
Accordingly, no recognition has been given to income taxes in the accompanying
financial statements of the Partnership since the income or loss of the
Partnership is to be included in the tax returns of the individual partners.
 
 Allocation of Profits and Losses and Distributions of Cash Flow
 
   Partnership profits and losses (other than those arising from capital
transactions, described below) and distributions of cash flow are allocated 94%
to the Investor Limited Partners, 2.5% to the Class A Limited Partner, 1% to
the Class B Limited Partner and 2.5% to the General Partner until Payout (as
defined in the Partnership Agreement) and after Payout, 65% to the Investor
Limited Partners, 15% to the Class A Limited Partner, 5% to the Class B Limited
Partner and 15% to the General Partner.
 
   Partnership profits and capital transactions are allocated first, in
proportion to the partners' respective capital accounts until their respective
account balances are zero and second, in proportion to any distributed cash
proceeds resulting from the capital transaction and third, any remaining
profit, if any, is allocated 65% to the Investor Limited Partners, 15% to the
Class A Limited Partner, 5% to the Class B Limited Partner, and 15% to the
General Partner.
 
   Partnership losses from capital transactions are allocated first, in
proportion to the partners' respective capital accounts until their respective
account balances are zero and, second, any remaining loss, if any, is allocated
65% to the Investor Limited Partners, 15% to the Class A Limited Partner, 5% to
the Class B Limited Partner, and 15% to the General Partner.
 
 New Accounting Pronouncements
 
   In June 1997, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 130, "Reporting Comprehensive Income," which establishes standards for
reporting and display of comprehensive income and its components in financial
statements. SFAS No. 130 states that comprehensive income includes reported net
income of a company, adjusted for items that are currently accounted for as
direct entries to equity, such as the net unrealized gain or loss on securities
available for sale. SFAS No. 130 is effective for both interim and annual
periods beginning after December 15, 1997. Management does not anticipate that
adoption of SFAS No. 130 will have a material effect on the financial
statements.
 
                                      F-79