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    Assessing Cost Drivers

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    Discuss the implications of GASBS 34 and government-wide financial reporting on the budgeting process in a city.

    Note: Please cite the sources

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    Cost drivers
    Discuss the implications of GASBS 34 and government-wide financial reporting on the budgeting process in a city.

    Note: Please cite the sources
    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. This new standard will significantly change the way school districts and county offices of education report their finances to the public. Shifting the focus of financial reporting from the status of individual funds to the overall status of the local educational agency's (LEA's) financial health, the new standard requires that more and easier to understand financial information be presented to the public.
    The requirements of GASB Statement 34 are phased in based on the LEA's total annual revenues. The following table displays the three phases.
    Phase Total Annual Revenues Effective Beginning With
    1 $100 million or more Fiscal year 2001-02
    2 At least $10 million but less than $100 million Fiscal year 2002-03
    3 Less than $10 million Fiscal year 2003-04

    Overview of GASB Statement 34
    The new financial reporting model under GASB Statement 34 requires the following additional information for the annual financial reports of school districts and county offices of education to be presented in conformity with generally accepted accounting principles (GAAP):
    ? Management's Discussion and Analysis
    ? Basic Financial Statements
    ? Required Supplementary Information
    Financial managers of LEA's should include sufficient information in the analysis for users of the financial statements to evaluate whether the financial position of the LEA has improved or deteriorated as a result of the year's ...

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