Agency fund assets and liabilities are to be recognized:

Question

Quizplus · Accepted Answer

Agency funds use the economic resources measurement focus and accrual basis of accounting. Assets accounted for in an agency fund belong to the party or parties for which the government acts as agent. Agency fund assets are offset by liabilities in equal amount; no fund equity exists. Agency fund assets and liabilities are to be recorded at the time the government become responsible for the assets.

Agency Fund Assets and Liabilities Are to Be Recognized