GASB requires that the reconciliation of income and cash flows from operations starts with operating income.

Question

Quizplus · Accepted Answer

GASB 34 requires that for governmental funds, the reconciliation of income and cash flows from operations starts with operating income. This is because the focus is on the flow of current financial resources, rather than the accrual of revenues and expenses. However, for proprietary and fiduciary funds, the reconciliation starts with net income (or change in net position) rather than operating income.

GASB Requires That the Reconciliation of Income and Cash Flows