How do I find my major funds for GASB 34?
Major funds are funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds.
What is the difference in reporting exchange and a Nonexchange transaction?
An exchange or exchange-like transaction is one in which each party receives and sacrifices something of approximate equal value. A non-exchange transaction is one in which one party receives something of value without directly giving value in exchange.
What is all about GASB Statement 34?
GASB 34 lays out the financial statements that government entities should provide for review. This includes required supplementary information, including budgetary comparison schedules, as well as financial data for enterprise and internal service funds.
What is the GASB 34 threshold?
As a general rule, capitalization thresholds should be designed to encompass approximately 80 percent of a government’s total noninfrastructure assets. . . . In no case should a government establish a capitalization threshold of less than $1,000 for any individual item. Depreciation of capital assets under GASB 34.
What are the two distinct sets of financial statements that GASB 34 requires?
34 requires two sets of financial statements for a government. One set, which is based on modern accrual accounting, is described at length in the article. The other set, based on traditional fund accounting, is mentioned in only three short paragraphs. Two sets of statements require twice the bookkeeping.
What is a permanent government fund?
A permanent fund is a fund where the principal fund may not be used and only earnings on the fund are used for the benefit of the government or its citizens.
What is a Nonexchange transaction?
In a nonexchange transaction, a government gives (or receives) value without directly receiving (or giving) equal value in return. This is different from an exchange transaction, in which each party receives and gives up essentially equal values.
What is imposed Nonexchange revenues?
Imposed nonexchange revenues – result from assessments imposed on nongovernmental entities, including individuals, (other than assessments imposed on exchange transactions). Examples are property taxes, fines, and seized property.
When did GASB 34 take full effect?
Most of the requirements of Statement 34 became effective in three phases, depending on the size of a government, between 2002 and 2004. The provisions related to reporting existing general infrastructure assets were fully effective in 2006 and 2007.
What year was GASB 34 issued?
June 1999
In June 1999, the Government Accounting Standards Board (GASB) issued GASB Statement #34 Basic Financial Statements and Management Discussion and Analysis-for State and Local Governments. This Statement resulted in sweeping changes in financial reporting for governmental entities.
What measurement focus is used in government-wide financial statements?
economic resources measurement focus
The government-wide financial statements consist of a statement of net assets and a statement of activities and are prepared using the economic resources measurement focus and the accrual basis of accounting.
What financial statement reconciliations are required by the GASB and why are they required?
The GASB requires two financial statement reconciliations: (1) a reconciliation of the total governmental fund balances on the governmental funds balance sheet to the total governmental activities net position on the government-wide statement of net position and (2) a reconciliation of the net change in governmental …