You Are Doing WHAT to the Governmental Funds?? – Part 3, The Long-Term Approach

Yogi Berra said it best.  “It’s déjà vu all over again.”  That is what should come to everyone’s mind upon reviewing the third measurement focus and basis of accounting proposal from the Governmental Accounting Standards Board’s (GASB) recent Invitation to Comment (ITC), Financial Reporting Model Improvements – Governmental Funds.  As was noted in the previous blog post You Are Doing WHAT to the Governmental Funds?? -  Part 2, the Short-Term Approach, each proposal is moving further and further away from the current financial resource measurement focus and the modified accrual basis of accounting currently used in the governmental funds.  Well, this is an all-out retreat!!  In fact, it is also being referred to as the total financial resources approach. So, why the relevance of “It’s déjà vu all over again.”?  It is because when reading the description of the long-term approach described in the ITC, it is like reading GASB Statement No. 11, Measurement Focus and Basis of Accounting – Governmental Fund Operating Statements.  For those of you that don’t recall (or, for those who have blocked that terrible memory!), GASB Statement No. 11 was the GASB’s first attempt at significantly redefining what governmental funds should report, thus effectively scrapping