Question

Which of the following is true regarding fiduciary funds? Multiple Choice When a government provides employees a defined benefit pension plan, the government is required to present a ten year Schedule of Changes in Net Pension Liability and Related Ratios as required supplementary information. Governmental type funds report a net pension liability representing the unfunded pension obligation. Both of the above. Neither of the above.

Answer 1

A. When a government provides employees a defined benefit pension plan, the government is required to present a ten year Schedule of Changes in Net Pension Liability and Related Ratios as required supplementary information.

Step-by-step explanation:

Fiduciary funds are ways in which governments report on assets held in trust of others. It looks at net assets and the changes associated in the net assets. Fiduciary funds includes Pension, private purpose funds, investment pools and agency funds. Government funds do not report a pension liability. Rather they are presented using the economic resources measurement focus and the accrual basis of accounting.