What are the essential sections of external financial reports for governmental entities under GASB 34?

The essential sections of external financial reports for governmental entities under GASB 34 include management's discussion and analysis, fund financial statements, and required supplementary information, which aligns with the answer provided.

Management’s discussion and analysis serves as an overview of the financial activities, providing context and insight into the government's financial performance and position. This section is meant to enhance the understanding of the financial statements by giving qualitative information regarding the financial health of the governmental entity.

Fund financial statements focus on the financial resources and obligations of individual funds, presenting that information in a way that highlights compliance with budgetary restrictions and legal requirements. This is crucial for stakeholders interested in specific aspects of a government's finances, especially in ensuring that funds are used as intended.

Required supplementary information complements the basic financial statements by providing additional context or disclosures that are necessary for a complete understanding of the financial situation. GASB emphasizes that this section is important for providing information that might not be fully represented in the fund financial statements alone.

This answer is appropriate because it captures the key components that GASB 34 requires in external financial reporting for governmental entities, ensuring transparency and accountability to various stakeholders.