Statement 36 amends Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions, which required recipients of shared derived tax or imposed nonexchange revenue to account for it differently than the provider government. This practice could have resulted in the two governments recognizing the sharing at different times.

The Implementation Guide is the centerpiece of the GASB's extensive efforts to assist governments with the preparation of the new financial statements required by Statement 34. That Statement, issued in June 1999, is one of the most comprehensive standards in the history of governmental accounting. All state and local governments will implement Statement 34 during the next two to four years.

"Throughout the process of developing these important improvements in financial reporting, the Board was fully committed to providing meaningful assistance to governments as they implement the changes," said GASB Chair Tom L. Allen. "Since the adoption of Statement 34, the GASB has been working diligently to make the transition period as smooth as possible."

“The objective of the new standards is to enhance the understandability and usefulness of public college and university financial statements,” said GASB Project Manager Joseph Blythe. “The GASB believes that the information provided will better meet the needs of those who use financial reports issued by institutions of higher education.”

The new standards—known as GASB Statement No. 35, Basic Financial Statements—and Management’s Discussion and Analysis—for Public Colleges and Universities, amend GASB Statement 34, which dramatically changed how state and local governments report their finances. Statement 35 effectively extends the guidance of the new governmental financial reporting model to include public colleges and universities.