Summary of Statement No. 37

Statement No. 37
Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments: Omnibus—an amendment of GASB Statements No. 21 and No. 34
(Issued 6/01)

This Statement amends Statement No. 21, Accounting for Escheat Property, and Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments.

The amendments to Statement 21 are necessary because of the changes to the fiduciary fund structure required by Statement 34. Generally, escheat property that was reported in an expendable trust fund in the previous model should be reported in a private-purpose trust fund under Statement 34. This Statement explains the effects of that change.

The amendments to Statement 34 either (1) clarify certain provisions that, in retrospect, may not be sufficiently clear for consistent application or (2) modify other provisions that the Board believes may have unintended consequences in some circumstances.

The provisions clarified by this Statement include:

  • MD&A requirements. Governments should confine the topics discussed in MD&A to those listed in paragraph 11 of Statement 34, rather than consider those topics as "minimum requirements."
  • Modified approach. Adopting the modified approach for infrastructure assets that have previously been depreciated is considered a change in an accounting estimate. The effect of the change is accounted for prospectively, rather than as a restatement of prior periods.
  • Program revenue classifications. Fines and forfeitures should be included in the broad charges for services category. Also, additional guidance is provided to aid in determining to which function certain program revenues pertain.
  • Major fund criteria. Major fund reporting requirements apply to a governmental or enterprise fund if the same element (for example, revenues) exceeds both the 10 and 5 percent criteria.
Modifications to the requirements of Statement 34 include:

  • Eliminating the requirement to capitalize construction-period interest for governmental activities
  • Changing the minimum level of detail required for business-type activities in the statement of activities from segments to different identifiable activities.
The provisions of this Statement should be simultaneously implemented with Statement 34. For governments that implemented Statement 34 prior to the issuance of this Statement, this Statement’s requirements are effective for financial statements for periods beginning after June 15, 2000.

Unless otherwise specified, pronouncements of the GASB apply to financial reports of all state and local governmental entities, including general purpose governments; public benefit corporations and authorities; public employee retirement systems; and public utilities, hospitals and other healthcare providers, and colleges and universities. Paragraph 2 discusses the applicability of this Statement.