The New Governmental Financial Reporting Model under GASB Statement No. 34: An Emphasis on Accountability

Abstract

After more than a decade and a half of research, study, and public comment, the Governmental Accounting Standards Board (GASB) in June 1999 issued the standards for a new governmental accounting model, GASB Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments (hereafter Statement No. 34). These new standards introduced significant operational accountability by adding a set of additional government‐wide financial statements to the current set of fund‐based financial statements, which had previously focused on fiscal accountability. Other changes have resulted in substantially improved accountability in the government reporting model.