Premium
Adapting GASB 34 for Water Utility Rate‐Making
Author(s) -
Mumm Jason,
Matthews Paul
Publication year - 2004
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.2004.tb10534.x
Subject(s) - confusion , statement (logic) , accounting , financial statement , business , actuarial science , psychology , political science , law , audit , psychoanalysis
When the General Accounting Standards Board issued Statement No. 34 in 1999, many utility managers thought it meant big changes to their water rate‐making principles and financial reporting requirements. However, GASB 34 does not change these principles. Although it puts forth new reporting standards and definitions, AWWA Manual M1 remains the preeminent guide for water utility ratemaking, regardless of the accounting rules presented by GASB 34. This article helps eliminate some of the confusion surrounding GASB 34 and its relationship to rate‐making.