GASB Statement 34 and Reporting of Expenditures

Instructions:

Provide complete answers to the following two questions.

1. Although Statement No. 34 requires that infrastructure assets be accounted for similarly to other capital assets, it allows for a major exception with regard to depreciation. What is that exception?

2. 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?

Requirements:

- Submit your responses to the following questions in a 1-2 page document in MS Word. Label each question clearly. Please include computations in a table.

- For written answers, please make sure your responses are grammatically correct and free from spelling errors.