Academic journal article Journal of Accountancy

When to Implement GASB No. 34?

Academic journal article Journal of Accountancy

When to Implement GASB No. 34?

Article excerpt

When a government is to implement GASB No. 34 would seem to be a straightforward issue; but, believe it or not, a few government officials and their auditors are still confused about it.

Making this determination is a two-step process. First, the government needs to calculate its total revenues (governmental fund total revenues + enterprise fund operating revenues + enterprise fund nonoperating revenues) for the first fiscal year ending after June 15, 1999. You are probably thinking that is about 5 years ago. Why should that fiscal year matter now? The answer is because that was the cutoff date established by the GASB in Statement No. 34. Once this amount is determined, you may proceed to the second step.

Second, using the total revenue number calculated in the first step, select the appropriate fiscal year:

* $100 million or more: Fiscal years beginning after June 15, 2001

* $10 million to less than $100 million: Fiscal years beginning after June 15, 2002

* Less than $10 million: Fiscal years beginning after June 15, 2003

Although the implementation revenue calculation should be fairly straightforward, the auditor should keep in mind that not all things may be as they seem. The calculation is based on the presumption that the revenues are GAAP based revenues.

So what is so difficult? It is not, unless you are auditing a government that has been issuing OCBOA financial statements. …

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