Chapter 8 Section 6: Fiduciary Funds

Question 1

Is the statement of cash flows for fiduciary funds required?

Answer 1

No

Question 2

How are assets usually valued in fiduciary funds?

Answer 2

Fair value

Question 3

Outline the statement of fiduciary net position for pension funds

Answer 3

Assets
Liabilities
Net position

Question 4

Outline the statement of changes in fiduciary net position

Answer 4

Additions (contributions, investment earnings)
Deductions
Change in net position
Net position - beginning
Net position  - ending

Question 5

Does an agency fund have the equivalent of an income statement? Why?

Answer 5

No, because it’s like a mailman - it just holds things for other people. There’s no opportunity for income.

Question 6

What do you do with special assessments where the gov’t unit is not otherwise obligated for the debt?

Answer 6

Put the receivable and debt service transaction in the agency fund

Question 7

What is the basic formula for the statement of fiduciary net position for agency trust funds?

Answer 7

Current assets = current liabilities

Question 8

Outline the statement of fiduciary net position for agency trust funds.

Answer 8

Assets

Liabilities

Question 9

How are capital gains and losses recorded for private purpose trusts?

Answer 9

As adjustments to fund principal and not to income, unless the grantor specified otherwise

Question 10

What portion of an external investment pool should be reported as a separate investment fund?

Answer 10

The external portion of the pool