In January 2017, the GASB issued a new standard related to the reporting of fiduciary activities. The standard is effective for reporting periods beginning after December 15, 2018.

Required
Go to the GASB website (www.gasb.org) and download GASB Standard No. 84, Fiduciary Activities. Using the information provided in the “Background” and “Basis for Conclusions” sections, answer the following questions.
a. Why did the GASB determine that GASB Standard No. 84 was needed?
b. Paragraph 8a of the standard indicates that a component unit should be considered a fiduciary activity if the activities are administered through a trust or equivalent arrangement. Using the “Basis for Conclusions,” discuss what is meant by an equivalent arrangement.
c. If fiduciary assets are not a part of the government reporting entity, why does the GASB require the assets to be reported in financial statements? (Look under “Reporting Fiduciary Activity” in the “Basis for Conclusions.”)
d. The GASB has allowed custodial funds to aggregate additions by source and deductions by type. Why has the GASB allowed for aggregation and under what circumstances does it allow aggregation? (Hint: Look under “Custodial Funds” in the “Basis for Conclusions.”)