How is a private purpose trust fund different from a permanent fund?
Answer to relevant QuestionsWhat is the rationale for accounting for nonexpendable endowment funds on a full, rather than a modiﬁed, accrual basis? Why is it important that depreciation be charged on long-term assets held as ﬁduciary fund ...A college has adopted a “ﬁxed rate of return” approach to the distribution of investment income. Each year it transfers 6 percent of its endowment value to expendable funds, irrespective of actual earnings. Suppose ...Why are the problems of accounting for postemployment health care beneﬁts similar to those of accounting for pensions? Why, however, are they even more intractable?Hayward City maintains a deﬁned beneﬁt pension plan for its employees. In a recent year the city contributed $5 million to its pension fund. However, its annual pension cost as calculated by its actuary was $7 million. ...The 2015 ﬁnancial statements of a city’s single employer pension plan revealed the following (in thousands):Total assets, year-end ............ $ 7,200,000Total liabilities, year-end ........... $ 10,000Annual ...
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