GASB state 34
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&A) statement will be required. Wit
A third important change that statement 34 will usher in is the way governments report activity in their major funds. Governments will no longer report their funds in aggregate form. The new model will reclassify funds into more specific individual fund listings. This change will make it easier to track specific expenditures while increasing government accountability. Governments are having mixed reactions concerning the implementation of GASB No. 34. Some states, such as Wisconsin, have already implemented the statement while others, hardly know it exists. The state controller of Wisconsin is sending out a strong message, urging all states to get an early start. Other states, such as Michigan, already use procedures similar to those of statement 34. As a result, Michigan plans to have met the requirements of statement 34 sometime in 2001. The larger states are under the most pressure, given they have the most to do and the least time to accomplish it. Many governments find the time constraints difficult, given the Y2K problem is still not fixed in many states. Governments, especially the larger ones, must really be on top of things to meet the time requirements of statement 34.
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Approximate Word count = 837
Approximate Pages = 3 (250 words per page double spaced)
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