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Financial reporting for pension trust funds is ______ reporting for other fiduciary funds.

consistent with
significantly different than

1 Answer

4 votes

Final answer:

Financial reporting for pension trust funds is consistent with reporting for other fiduciary funds, where accrual accounting is used, aiming at accountability and stewardship over the entrusted resources.

Step-by-step explanation:

Financial reporting for pension trust funds is consistent with reporting for other fiduciary funds. Fiduciary activities are reported by governments when they act in a fiduciary capacity for parties outside the government. Pension trust funds, investment trust funds, private-purpose trust funds, and custodial funds are all examples of fiduciary funds. In all cases, governments are required to use accrual accounting and report the resources that cannot be used to finance their own programs. The reporting focuses on ensuring that an external party can assess the accountability and stewardship of the government over the resources entrusted to it.

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