Liberty County maintains an investment pool on behalf of certain cities within the county.When it prepares its statement of fiduciary net position at year-end,how should Liberty value the corporate securities that it holds on behalf of the cities?

Question

Quizplus · Accepted Answer

Liberty County should value the corporate securities at their fair value at year-end because the statement of fiduciary net position is prepared as of year-end and reflects the fair value of the assets held on behalf of the cities. Valuing the securities at the amount originally sent by the cities for investment (A) or at the amount paid by the county to acquire the securities (B) would not reflect any changes in value that may have occurred during the year. Valuing the securities at the average value during the year (D) would also not provide an accurate reflection of the fair value at year-end.

Liberty County Maintains an Investment Pool on Behalf of Certain