GASB Statement No. 84, Fiduciary Activities is effective for reporting periods beginning after December 15, 2018. Go to www.gasb.org (Links to an external site.) and download Statement No. 84, then address the following:
- Why was Statement No. 84 needed?
- If fiduciary assets are not a part of the government reporting entity, why does the GASB require the assets to be reported in the financial statements?
- Why has GASB allowed for aggregation and under what circumstances does it allow aggregation?
- Using the “Basis for Conclusions” discuss what is meant by an equivalent arrangement for the Paragraph 8a standard that indicates a component unit should be considered a fiduciary activity if the activities are administered through a trust or equivalent arrangement.