How does GASB 34 change district financial reporting?

• A. It requires government-wide financial statements on an accrual basis that present net position and changes in net position, integrated with traditional fund-based statements.
• B. It eliminates the need for fund-based statements.
• C. It requires cash basis reporting for all district activities.
• D. It requires only capital asset disclosures.

Answer: (A)

GASB 34 introduces government-wide financial statements that are prepared on the accrual basis and show net position and changes in net position, in addition to the traditional fund-based statements. This provides a more complete, consolidated view of the district’s financial condition by including long-term assets and liabilities (not just current funds) and by presenting a true net worth rather than only fund balances. The government-wide statements are designed to be integrated with the existing fund statements, with reconciliation showing how the two views connect.

This change does not eliminate fund-based statements; it adds them to the reporting package, giving users both the fund-level view and the overall government-wide view. It also does not require cash-basis reporting or limit disclosures to capital assets alone.