Copyright© 2001 by School Services of California, Inc.

Volume 14                   For Publication Date: December 7, 2001             No. 25

Ask SSC . . .

What is GASB 35?

17. I have read a lot of information relating to GASB 34. Just recently I heard that we also have to comply with GASB 35. What is GASB 35?

1. Governmental Accounting Standards Board Statement No. 35 (GASB 35) primarily amends GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, to include public colleges and universities.

In footnote 3 of GASB 34, public colleges and universities are specifically excluded. However, GASB 35 supersedes this exclusion. It permits such public institutions to use the GASB 34 standards for special-purpose governments engaged only in Business-Type Activities (BTA), engaged only in governmental activities, or engaged in both governmental and BTA.

A BTA should be identified as a proprietary fund on the full accrual basis of accounting. The financial statement presentation should include:

• Statement of net assets or balance sheet

• Statement of revenues, expenses, and changes in fund net assets or fund equity

• Statement of cash flows.

GASB 35 has far-reaching implications for financial statements of community colleges. We will continue to provide implementation information as it becomes available.