Account For Fiduciary Funds Practice Test

A municipality operates an external investment pool for other governments and reports it as an investment trust fund. The pool’s year-end financial statements are prepared under the economic resources measurement focus and accrual basis of accounting, consistent with fiduciary fund reporting. Under GASB Statement No. 84, how should the municipality report the net position of the investment trust fund in its fiduciary fund financial statements?

A city sponsors an external investment pool reported as an investment trust fund under GASB Statement No. 84. The city’s pool holds investments for participants and also holds $500,000 of the city’s own money in the pool (the city is a participant). For fiduciary fund reporting purposes, how should the city account for its own $500,000 participation in the pool?