Governments are often required to hold or manage assets on behalf of others. NCGAS 1 recognized the need for fiduciary funds (known as trust and agency funds prior to GASBS 34), “to account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds.”

GASBS 34 updated the types of fiduciary funds to include the following:

  1. Pension (and other employee benefit) trust funds.
  2. Investment trust funds.
  3. Private‐purpose trust funds.
  4. Agency funds.

The funds are reported under GASBS 34 only in fiduciary fund financial statements. They are not reported as part of the government‐wide financial statements.

Each of these fund types is described below. In addition, Chapter 22 describes the accounting and financial reporting principles used by ...

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