When a governmental entity adopts a basis of accounting other than full accrual and a measurement focus that excludes long-lived assets and liabilities in its governmental fund types:

Question

Quizplus · Accepted Answer

The new GASB reporting model allows for governmental entities to adopt a basis of accounting other than full accrual and a measurement focus that excludes long-lived assets and liabilities in its governmental fund types for the purpose of reporting in accordance with GAAP standards for the governmental fund financial statements. Therefore, it is not a violation of the law or GAAP and does comply with the new reporting standards. It does not necessarily provide better measurement of results of operations, but it does provide a different way of presenting financial information for governmental funds.

When a Governmental Entity Adopts a Basis of Accounting Other