Question

Which standard issued by the Governmental Accounting Standards Board in 1999 required two distinct sets of financial statements for state and local governments?

A. GASB Statement No. 32.
B. GASB Statement No. 33.
C. GASB Statement No. 34.
D. GASB Statement No. 35.
E. GASB Statement No. 36.

Answer 1

GASB Statement No. 34, issued in 1999, required state and local governments to present two sets of financial statements for enhanced financial transparency.

Step-by-step explanation:

The standard issued by the Governmental Accounting Standards Board (GASB) in 1999 that required two distinct sets of financial statements for state and local governments is GASB Statement No. 34. This statement enhanced the transparency and accessibility of financial reporting by state and local governments, ensuring they provide both government-wide financial statements and fund financial statements. This dual reporting framework helps users of financial reports understand the short-term and long-term financial position of the governmental entities.