GASB 34 Project

Introduction  GASB 34 was issued in June 1999.  It drastically changes reporting for state and local government entities.  While the course has focused on current GAAP for state and local governments, GASB 34 will be implemented as beginning for fiscal years beginning after June 15, 2001 (for large entities), with a three-year phase-in of the standard. 

Importance  The government accounting community views this as the most monumental change in the history of government accounting.  Not only will you be applying the new standard in the next few years, potential employers would expect you to be aware of such a major development in accounting.  Also, since the standard encourages early implementation, it is fair game for the AICPA to begin including it on the CPA exam as early as next May.

GASB 34 does not change everything you have learned in the course -- rather it builds on it.  The "new" financial reporting requirements are largely additional to current practices.  The "old" way will still be applied in a significant portion of the financial statements.

Purpose  The purpose of the assignment on GASB 34 is to introduce you to the changes that will be brought about when GASB 34 is implemented.  The standard is quite complex.  For this course, you are responsible for GASB 34 only for purposes of this project (not on the final exam). 

Required  Prepare a list of the significant changes that GASB 34 will require compared to the current state and local government accounting practices.  The list should be in a numbered format (1, 2, etc.), not in an essay format.  Organize your differences as follows:

Topic A:  Government-Wide Financial Statements

Topic B:  Fund Finanical Statements

Topic C:  Other Changes

Your list should be at least 1 but no longer than 2 single-spaced typed pages.

You are allowed and encouraged to work in pairs (submit one product).

Due Date  Your list is due the last day of regular class, Friday, December 10th.