In this lesson, Nick Palazzolo, CPA, delves into the intricacies of Fiduciary Funds, specifically focusing on the concept and reporting of investment trust funds within government accounting. He sheds light on the less common but relevant scenario where government entities manage investment pools for various reasons. Nick uses the example of the State of Alaska, where investment funds benefit local citizens, to illustrate the practical application of these funds. He walks through the definition of revenues and expenses related to these funds, clarifying that revenues include cash inflows like contributions and asset appreciation, while expenses entail beneficiary payments and administrative costs, such as accounting for the fund.
Lesson: Investment Trust Fund
In this lesson, Nick Palazzolo, CPA, delves into the intricacies of Fiduciary Funds, specifically focusing on the concept and reporting of investment trust funds within government accounting. He sheds light on the less common but relevant scenario where government entities manage investment pools for various reasons. Nick uses the example of the State of Alaska, where investment funds benefit local citizens, to illustrate the practical application of these funds. He walks through the definition of revenues and expenses related to these funds, clarifying that revenues include cash inflows like contributions and asset appreciation, while expenses entail beneficiary payments and administrative costs, such as accounting for the fund.
Updated: Oct. 20, 2021 Create an account