Government Accounting

GASB issues Statement no. 39, Determining Whether Certain Organizations Are Component Units ( www.gasb.org/news/nr052802.html ). Under it state and local governments with certain fundraising organizations, such as not-for-profit foundations that have a relationship with public universities and/or school districts, must include in their financial statements separate presentations of those subordinate entities’ financial activities. The new guidance amends Statement no. 14, The Financial Reporting Entity (June 1991). It is effective for financial statements covering periods beginning after June 15 and is available from GASB at 800-748-0659 or at www.gasb.org . In a separate announcement on its Web site ( www.gasb.org/tech/GASB_39_error.html ), GASB provides wording inadvertently omitted from the first printed copies of Statement no. 39; copies of it distributed after June 3 contain the statement’s full text.