OPTION #1: GASB STATEMENT 34 AND REPORTING OF EXPENDITURES
Provide complete answers to the following two questions.
- Although Statement No. 34 requires that infrastructure assets be accounted for similarly to other capital assets, it allows for a major exception regarding depreciation. What is that exception?
- A government’s interest expenditure as reported in its debt service fund differs significantly from its interest expense, as reported in its government-wide statements. What is the most likely explanation for the difference?
In your analysis, include the following:
- An introduction
- Requirements 1 – 2