What is GASB No 34?
What is GASB No 34?
GASB 34 is a set of accounting standards established by the Government Accounting Standards Board which requires government entities to report the value of their capital assets on their financial statements.
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 year was GASB 34 issued?
1999
In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement 34, Basic Financial Statements-and Management’s Discussion and Analysis and Analysis-For State and Local Governments.
What are the two distinct sets of financial statements that GASB 34 requires?
Two sets of statements require twice the bookkeeping. More important, these statements report two different numbers for operating performance—one reports the items as expenses; the other reports expenditures.
Why is GASB 34 important?
GASB 34 provides a comprehensive framework for financial reporting with the objective of making annual reports easier to understand and more useful to the people who rely upon the financial condition contained therein.
What is the purpose of GASB?
The GASB develops and issues accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to taxpayers, public officials, investors, and others who use financial reports.
How do you implement GASB?
GASB 87, Leases: Four steps to a successful implementation
- Step 1: Assess the impact: Identify the population of leases.
- Step 2: Gather the data.
- Step 3: Seek additional resources.
- Step 4: Prepare for implementation.
What are the five types of governmental funds?
According to the GAAFR (the Blue Book), governmental funds are “used to account for activities primarily supported by taxes, grants, and similar revenue sources.” Within the category of Governmental Funds, there are five types: General Fund, special revenue funds, debt service funds, capital projects funds, and …
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 GASB 68?
GASB, Financial Accounting Standards Board. 68, Accounting and Financial Reporting for Pensions, revises and establishes new financial reporting requirements for most state and local governments that provide their employees with pension benefits.
What are the three classifications of funds?
There are three major types of funds. These types are governmental, proprietary, and fiduciary.
