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<br />Summary of Statement No 34 <br /> <br />PageS of 8 <br /> <br />Statement also requires RSI for governments that use the <br />modified approach for reporting infrastructure assets. <br /> <br />Special-purpose governments that are engaged in only <br />governmental activities (such as some library districts) or that are <br />engaged in both governmental and business-type activities (such as <br />some school districts) generally should be reported in the same <br />manner as general purpose governments. Special-purpose <br />governments engaged only in business-type activities (such as <br />utilities) should present the financial statements required for <br />enterprise funds, including MD&A and other RSI. <br /> <br />Important Aspects of MD&A <br /> <br />MD&A should provide an objective and easily readable analysis of <br />the government's financial activities based on currently known facts, <br />decisions, or conditions. MD&A should include comparisons of the <br />current year to the prior year based on the government-wide <br />information. It should provide an analysis of the government's <br />overall financial position and results of operations to assist users in <br />assessing whether that financial position has improved or <br />deteriorated as a result of the year's activities. In addition, it should <br />provide an analysis of significant changes that occur in funds and <br />significant budget variances. It should also describe capital asset <br />and long-term debt activity during the year. MD&A should conclude <br />with a description of currently known facts, decisions, or conditions <br />that are expected to have a significant effect on financial pOSition or <br />results of operations. <br /> <br />Important Aspects of the Government-wide Financial <br />Statements <br /> <br />Governments should report all capital assets, including <br />infrastructure assets, in the government-wide statement of net <br />assets and generally should report depreciation expense in the <br />statement of activities. Infrastructure assets that are part of a <br />network or subsystem of a network are not required to be <br />depreciated as long as the government manages those assets using <br />an asset management system that has certain characteristics and <br />the government can document that the assets are being preserved <br />approximately at (or above) a condition level established and <br />disclosed by the government. <br /> <br />The net assets of a government should be reported in three <br />categories-invested in capital assets net of related debt, restricted, <br />and unrestricted. This Statement provides a definition of the term <br />res/rioted. Permanent endowments or permanent fund principal <br />amounts included in restricted net assets should be displayed in two <br />additional components--expendable and nonexpendable. <br /> <br />The government-wide statement of activities should be presented in <br />a format that reports expenses reduced by program revenues, <br />resulting in a measurement of "net (expense) revenue" for each of <br />the governmenfs functions. Program expenses should include all <br />direct expenses. General revenues, such as taxes, and special and <br />extraordinary items should be reported separately, ultimately <br />arriving at the change in net assets for the period. Special items are <br />significant transactions or other events that are either unusual or <br /> <br />http://accounting.rutgers.edulraw/gasb/stlsummary/gstsm34.html <br /> <br />2/8102 <br />