Statement of Change in Net Financial Assets

The Statement of Change in Net Financial Assets reconciles the change in net assets for the current and the prior year. This information helps readers understand why the position of the municipality changed. To explain how the expenditures of the period were met by revenues, the statement reconciles the annual operating surplus or deficit shown in the Statement of Operations to the change in net assets shown in the Statement of Financial Position.

The common items that explain the difference between the annual surplus or deficit and the change in net assets are:

› Acquisition and disposal of tangible capital assets (TCA)

› Current year amortization expense for TCA (expense for current year consumption)

› Acquisition and disposal of other non-financial assets