Question

The financial position of the Policemen's Pension Fund administered by a city should be reported in the city's basic financial statements as a column in the

a. Balance sheet governmental funds.
b. Statement of fiduciary net position.
c. Government-wide statement of net position.
d. Statement of assets, liabilities, and fund balances.

Answer 1

The financial position of the Policemen's Pension Fund should be reported in the city's Statement of fiduciary net position as it holds assets in a fiduciary capacity for employees.

Step-by-step explanation:

The financial position of the Policemen's Pension Fund administered by a city should be reported in the city's basic financial statements as a column in the b. Statement of fiduciary net position. The Statement of fiduciary net position is used to report assets, liabilities, and net position held in a fiduciary capacity. This includes pension and other employee benefit funds that the city is responsible for managing on behalf of its employees. The fiduciary activities are reported in a separate statement because these resources are not available to fund the government's own programs.