GASB state 34 essays

GASB state 34 essays On June 30, 1999 the GASB passed statement number 34. Statement 34 establishes new accounting requirements for state and local governments that are scheduled to begin on June 15, 2002. There are three phases scheduled for the implementation of statement 34, each depending on the size of the government. The largest governments must meet the requirement first while the smaller governments have more time to comply with the statement. Statement 34 will improve the governmental accounting system in many ways. First, statement 34 will create easier to understand financial statements. This will allow people other than accountants to understand the information within a government financial statement. Secondly, statement 34 will help city officials keep track of fixed assets that need to be replaced or improved. This addition is important because city officials often forget that assets have been in use for too long, resulting in costly improvements that could be avoided. Furthermore, statement 34 will allow readers to determine whether the government has improved since the last fiscal year. These goals will be accomplished in several ways. First, a management discussion and analysis (MD Another notable change made by statement 34 is the adoption of the full accrual method. This will greatly change the bottom line of many governmental entities. Under this system, governments will report all revenue...