United States

Proposed guidance for reporting fiduciary activities


Governments currently are required to report fiduciary activities in fiduciary fund financial statements. However, because existing standards are not explicit about what constitutes a fiduciary activity for accounting and financial reporting purposes, there is variation in practice with respect to identifying and reporting fiduciary activities. To enhance the consistency and comparability of fiduciary activity reporting by state and local governments, the Governmental Accounting Standards Board recently issued an Exposure Draft, Fiduciary Activities. The Exposure Draft establishes criteria for identifying and reporting fiduciary activities of all state and local governments. The focus of the criteria generally is whether a government is controlling the assets of the fiduciary activity and the beneficiaries with whom a fiduciary relationship exists. An activity meeting the proposed criteria would be required to be reported in a fiduciary fund in the basic financial statements.

If finalized, the requirements of the proposed Statement would be effective for reporting periods beginning after December 15, 2017. The Exposure Draft is available for comment until March 31, 2016.