News Release 05-05-00B


GASB Establishes Symmetry between Recipients And Providers in Accounting for Certain Shared Revenues

Norwalk, CT, May 5, 2000—The Governmental Accounting Standards Board has issued Statement 36, Recipient Reporting for Certain Shared Nonexchange Revenues, which changes the accounting methods that should be used by recipients of certain shared revenues derived from "nonexchange" transactions. In a nonexchange transaction, a government gives or receives value without directly giving or receiving equal value in exchange, such as collecting general taxes and providing or receiving grants.

Statement 36 amends Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions, which required recipients of shared derived tax or imposed nonexchange revenue to account for it differently than the provider government. This practice could have resulted in the two governments recognizing the sharing at different times.

GASB Project Manager Wesley Galloway explains, "This Statement provides symmetrical accounting treatment for both the giver and the receiver of the shared revenue. Statement 36 eliminates the timing difference by requiring recipients to account for the sharing in the same way as provider governments."

Statement 36 should be implemented simultaneously with Statement 33, which becomes mandatory for periods beginning after June 15, 2000. Governments that have implemented Statement 33 early should apply Statement 36 in the next GAAP report that is issued.

The GASB is the independent private-sector organization, formed in 1984, that establishes and improves financial accounting and reporting standards for state and local governments. Its seven members are drawn from the Board's diverse constituency, including preparers and auditors of state and local government financial statements, users of those statements, and members of the academic community. More information about the GASB can be found at this website.

Copies of Statement 36 (GS36) may be obtained from the GASB Order Department by telephone (800-748-0659), e-mail (, or mail (401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116).