In short
Fiduciary funds account for resources a government holds for others, such as employee pension plans or taxes collected for another government. They include pension (and other employee benefit) trust funds, investment trust funds, private-purpose trust funds and custodial funds.
Key takeaways
- They use the economic resources focus and full accrual basis.
- They are excluded from the government-wide financial statements because the resources can't be used for the government's own programs.
- They present a statement of fiduciary net position and a statement of changes in fiduciary net position.
Where it's tested
FAR: Governmental Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A city holds resources in trust to pay pension benefits to its employees. In which fund are these resources reported?