Depreciation and Public Organizations

Note: The following information is provided for users of the Sage Fixed Assets Government Edition - Premier Depreciation program:

In 1984, the Financial Accounting Foundation (FAF) created the Governmental Accounting Standards Board (GASB). The purpose of GASB is to establish standards of financial accounting and reporting for state and local governmental entities. Most GASB pronouncements also apply to public benefit corporations, public employee retirement systems, public utilities, and public hospitals and health care providers. GASB publishes the rules for how these entities should prepare their external financial reports.

On June 10, 1999, GASB approved Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments. Statement No. 34 is undoubtedly the most important change in the history of governmental financial reporting. GASB Statement No. 34 requires that fixed asset record-keeping be implemented and maintained by state and local governments. This was soon followed by GASB Statement No. 35, which extends these principles to public universities and colleges.