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To make sure you are up to date on the special guidelines the GASB has declared, your manager asked you to research GASB Statement No. 56.
Write 500-750 words that addresses the following:
1. When was GASB Statement No. 56 initiated?
2. In your own words, what is the essence of the new ruling?
3. Why did the GASB probably deem it as being necessary?
4. How might GASB Statement No. 56 change the activities of any accountant performing governmental accounting?
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The inventory at the end of 2008 was found to be overstated by $15,000. At the same time it was discovered that the inventory at the end of 2007 had been overstated by $35,000. The company uses the perpetual inventory system.
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