At June 30,20X9,total assets for the various funds of a local municipality were as follows: Applying GASB 34 criteria,which of the above are major funds for reporting purposes?

Question

At June 30,20X9,total assets for the various funds of a local municipality were as follows:  Applying GASB 34 criteria,which of the above are major funds for reporting purposes?

Quizplus · Accepted Answer

According to GASB 34 criteria, a fund is considered major if it meets one of the three conditions:

1. Total assets, liabilities, revenues, or expenditures/expenses of the fund are at least 10% of the corresponding total for all funds of that type.
2. Total assets, liabilities, revenues, or expenditures/expenses of the fund are at least 5% of the corresponding total for all funds.
3. The fund is deemed significant in nature or purpose by the governing body.

Based on the information given, only the General Fund (GF), Capital Projects Fund (CPF), and Enterprise Fund (EF) meet the 10% threshold and therefore qualify as major funds for reporting purposes. The Internal Service Fund (ISF) does not meet the 10% threshold and is not considered a major fund. Therefore, the correct answer is A) GF, CPF, EF.

At June 30,20X9,total Assets for the Various Funds of a Local