(Nov. 10, 1999) Michael H. Granof has been Professor of Accounting at the University of Texas since 1972. He is an author of SmartPros' GASB Statement No. 34 course, the first CPE on the Web to cover the latest governmental financial reporting pronouncement. Granof served four years as chairman of the Texas Society of CPAs' Committee on Governmental Accounting and Auditing. He has also edited and written numerous articles in academic and professional journals on topics of managerial, financial and governmental accounting and has won many distinguished awards for excellence in his field. In this interview, Granof discusses the implications of the Governmental Accounting Standards Board's Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, which is one of GASB's most significant pronouncements.

	Track 1
Granof says that the Governmental Accounting Standard Board's Statement No. 34 is probably the most significant pronouncement issued by the GASB, as it overhauls the existing accounting model.

	Track 2
Granof discusses the deficiencies in the previous model, which were the impetus for the GASB to develop Statement No. 34 beginning in 1984.

	Track 3
The new model has several key features that Granof describes in detail.

	Track 4
The government-wide statements are a major change in financial reporting, says Granof, these statements focus on the government as a whole. They focus on all economic resources and should be on a full-accrual basis.

	Track 5
According to Granof, the government-wide statement of activities represents what is perhaps the major change in financial reporting.

	Track 6
There are some significant differences with governmental funds, specifically the manner in which they are displayed. Note: Due to the length of this track, it continues on track 7.

	Track 7
This is a continuation of track 6.

	Track 8
The GASB's approach to infrastructure has been the most controversial aspect of this pronouncement; governments are saying they do not have this information readily available, and more importantly, many governments charge that this is not the kind of information users want, explains Granof.

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