Accounting

The Statement No. 34 provide that managements discussions and analysis (MDA) should present a goal and  a very clear breakdown of the governments monetary activities which are based on facts not assumptions, decisions, or conditions which exactly corresponds to the auditors report date and the management are aware of them. Sometimes observations on individual separate component units can be incorporated if necessary but in most cases, managements discussions and analysis relies more on the government. They always lay emphasis on current-year actions but sometimes when necessary use the previous years activities. Statement No. 34 emphasis flexibility in its formulation and also requires at least a minimum quantity requirements for the MDA.

With the introduction of statements no.34, a new age in governmental monetary reporting begun. Its advantage is that it stands to have the best existing financial reporting practice in the government. More to that, it gives the users additional and easier to use information which to my view enable them to evaluate what happen in the government. Still, the government continues to give out information that is useful to be used to access both the short and long term financial accountability (httpwww.gasb.orgstindex.html and locate GASB Statement No. 34).

On the other hand, statement No. 34 will entail costs on the governments on the process of its realization. However, GASB have come up with some amendments to be done on the expected exposure draft which aims at cutting the cost of its implementation.  On my view, the best suggestion one can offer in controlling and minimizing the cost of its implementation is proper planning. One has to be conversant with the effects of this new mode of carrying out accounting processes in order to talk about planning. This then leads us to initially reading the whole document well and keenly.