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Option #1: GASB Statement 34 and Reporting of Expenditures

Provide complete answers to the following two questions.

  1. Although Statement No. 34 requires that infrastructure assets be accounted for similarly to other capital assets, it allows for a major exception regarding depreciation. What is that exception?
  2. A government’s interest expenditure as reported in its debt service fund differs significantly from its interest expense, as reported in its government-wide statements. What is the most likely explanation for the difference?

In your analysis, include the following:

  1. An introduction
  2. Requirements 1 – 2
  3. Conclusion


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