Fiduciary activities should be reported in fund statements, but should be excluded from the government-wide statements.

Question

Quizplus · Accepted Answer

Fiduciary activities are those activities where the government acts as a trustee for assets that belong to others, such as pension funds, investment trusts, or custodial funds. These activities are reported on separate fund statements because the government is acting as a custodian and is not responsible for the underlying assets. As a result, fiduciary activities should not be reported in the government-wide statements that report the government's overall financial position and activities.

Fiduciary Activities Should Be Reported in Fund Statements, but Should