Question
GASBS 34 requires that any fund that meets the following relative size criteria be designated as major: a. Total assets, liabilities, revenues, or expenditures/expenses of
GASBS 34 requires that any fund that meets the following relative size criteria be designated as major: a. Total assets, liabilities, revenues, or expenditures/expenses of that governmental or enterprise fund are at least 10 percent of the corresponding element total (assets, liabilities, and so forth) for all funds of that category or type (that is, total governmental or total enterprise funds), and (emphasis added) b. The same element that met the 10 percent criterion in (a) is at least 5 percent of the corresponding element total for all governmental and enterprise funds combined. In addition to funds that meet these two criteria, the General Fund of a state or local government must always be reported as a major fund. Finally, at its discretion, management can report as a major fund any other governmental or enterprise fund that it considers of significant importance to financial statement users. Access your local governments financial statements and using the above guidelines report on which funds they define as major and the criteria used to determine the funds as such.
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