Gasb assertion 34 analysis paper

Financial Statement Examination, Audit, Auditing, Government Accounting

Excerpt coming from Research Paper:

GASB Statement thirty four, Basic Financial Statements and Management Decisions

Select a local government in your state and review the financial transactions and examine report pertaining to the region or municipality. The economic statements from the government chosen should have at least 3 funds.

Situated in Muscogee County, the city of Columbus, Georgia is the state’s third-largest metropolis with more than 194, 1000 residents. The Consolidated Federal government of Columbus, Georgia just lately released it is latest Thorough Annual Financial Report (CAFR) for the 2011 financial year. Among the list of various cash for which this kind of report information accounting methods are the city’s General Fund, Special Revenue Funds, Financial debt Service Cash, and Capital Projects Funds.

Analyze the process of accounting used for the general fund and other money in existence by the government. Assess the reasoning when you use the method of accounting for every of the money as needed by GASB.

According to Figure A-1, Key Features of Columbus Consolidated Government’s Government-Wide and Fund Monetary Statements, the accrual accounting method is the city’s desired form of accounting, in accordance with the guidelines set forth by the Governmental Accounting Standards Table (GASB). Accrual accounting is employed within all of Columbus’ citywide bookkeeping because the GASB features issued very clear mandates regarding the Generally Accepted Accounting Rules (GAAP) that municipal government authorities can put into practice. As the CAFR says, “the government-wide financial statements are reported using the monetary resources dimension focus as well as the accrual basis of accounting, similar to the proprietary fund and fiduciary finance financial statements” (Hodge, 2012). The mentioned reason for using this accounting technique is that “under the accrual basis of accounting, revenues will be recorded once earned and expenses will be recorded if a liability can be incurred, regardless of timing of related cash flows” (Hodge, 2012). Accrual accounting may be the preferred sort of accounting utilized by municipal governments because it offers a more accurate manifestation of a city’s financial situation, together with the formerly standard practice of transferring one particular year’s financial obligations to the next fiscal year cut down entirely.

several. ) Assess the application and compliance of GASB Statement 34, Standard Financial Statements and Managing Decisions and Analysis for State and native Governments with each of the funds.

According to a Summary of GASB Assertion 34, which offers the structure for Basic Financial Statements – and Management’s Discussion and Examination – pertaining to State and native Governments, “financial managers also will be in a much better position to provide this analysis because intended for the first

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