The City of Hampshore is currently preparing financial statements for the past fiscal year. The city manager

Question:

The City of Hampshore is currently preparing for the past fiscal year. The city manager is concerned because the city encountered some unusual transactions during the current fiscal period and is unsure as to their handling.

Required
Use a copy of GASB Statement 34 to answer each of the following questions.
1. For government accounting, what is the definition of extraordinary item?
2. For government accounting, what is the definition of special item?
3. On government-wide how should extraordinary items and special items be reported?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...