Final answer:
Investment trust funds are reported at fair value, in the fiduciary funds statements, and use the accrual basis of accounting; they do not utilize the current financial resources measurement focus.
Step-by-step explanation:
Investment trust funds are part of the fiduciary funds statements, which include funds where the government acts as a trustee or an agent for individuals, private organizations, or other governments. These trust funds are used to account for assets that the government holds in a trustee capacity, and not funds that support the government's own programs. Therefore, investment trust funds:
- Are reported at fair value.
- Are reported in the fiduciary funds statements.
- Use the accrual basis of accounting.
The current financial resources measurement focus is not applied to fiduciary funds such as investment trust funds, which instead use the economic resources measurement focus, recognizing all assets and liabilities, not just current ones.