GASB proposes implementation guide for fiduciary activities standard

By Ken Tysiac

GASB published a proposed implementation guide Thursday that provides questions and answers about the board’s new standards for state and local government accounting and financial reporting for fiduciary activities.

GASB Statement No. 84, Fiduciary Activities, was issued in January 2017 and establishes criteria for identifying fiduciary activities of state and local governments. The focus of the criteria generally is on whether a government is controlling the assets of the fiduciary activity, and on the beneficiaries with whom a fiduciary relationship exists.

The statement includes separate criteria to identify fiduciary component units and post-employment benefit arrangements that are fiduciary activities.

The exposure draft of the implementation guide proposes answers to dozens of questions that may arise regarding the new standard. The purpose of the proposed guide is to clarify, explain, and elaborate on the requirements of the standard.

Comments on the ED can be submitted to the GASB website by Feb. 28.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.

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