The second significant change is that governments must produce a government-wide financial statement, not just an accounting of individual funds. According to GASB, the standards are designed to make annual reports easier to understand and to help the public, local governing boards and decision-makers assess the finances of their governments. For example, the public will be able to determine if a government's overall financial position has improved since the last report, or if a government's current revenues are sufficient to pay its bills. New reports will tell how much it costs to provide government services, and will show how much is spent on roads, bridges and other infrastructure. Taxpayers also will be able to compare their city or county with others around the state.
Companies planning to relocate want to understand the government's finances.
Here are the highlights. Highlights GASB 34 requires local governments' basic financial statements to include the items listed below. In addition, it should note and explain any significant changes in spending or debt, or other major changes in the government's budget. The new government-wide statements must use accrual accounting, a method that requires reporting all revenue and all costs of providing services each year, not just those revenues received or bills paid in the current year. The new standards also require local governments to use a big picture approach that focuses more on a government-wide perspective than on individual funds.