Final answer:
The purpose of complying with GASB# 34 is to provide greater transparency and accountability in the financial reporting of government entities by presenting separate fund financial statements for governmental and proprietary funds.
Step-by-step explanation:
When complying with GASB# 34, a government is required to present separate fund financial statements for its governmental and proprietary funds. The purpose of this requirement is to provide greater transparency and accountability in the financial reporting of government entities.
By presenting separate fund financial statements, the government can clearly distinguish between its different funds and provide more detailed information about the financial activities of each fund.
For example, a government may have separate funds for its general operations, capital projects, and enterprise activities. By presenting separate statements for each fund, stakeholders can understand the financial performance and position of each fund, which can help in decision-making and assessing the overall financial health of the government.