Evaluating Fiduciary Reporting Standards Discussion

In January 2017, the GASB issued a new standard related to the reporting of fiduciary activities. The standard was effective for reporting periods beginning after December 31, 2018.

Go to the GASB website (www.gasb.orgLinks to an external site.) and review GASB Standard No. 84 - Fiduciary Activities. Using the information provided in the background and basis for conclusion sections, respond to the following questions/statements.

1. Why did GASB determine the new standard (i.e. Statement No. 84) was needed?

2. If fiduciary assets are not part of the government reporting entity, why does the GASB require the assets to be reported in the financial statements?