41.Assume a government makes a change of assumption that results in an increase in its estimate of the net pension liability. This will be recorded in the government-wide statements as an increase in the net pension liability and an increase in deferred outflows of resources.
42.Pension expenditures for governmental type funds are equal to the amounts paid to the pension fund for current year service plus any accruals for amounts to be paid from current financial resources.
43.Investment Trust Funds account for only the external portion of investment pools.
44.An endowment to provide scholarships would be reported in a Private-purpose Trust Fund.
45.An endowment that is for the benefit of individuals and not the government controlling the funds should be accounted for using a private-purpose trust fund.
46.Investments in a private-purpose trust fund should generally be reported at fair market value.
47.Investments in a pension trust fund should generally be reported using fair market value.
48.Internal investment pools, which account for investments of the reporting entity, are to be reported within the funds providing the resources, when preparing financial statements.
49.When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals, organizations, or other governments, a private-purpose trust has been formed.
50.When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals, organizations, or other governments, an agency trust fund has been formed.
51.Equity investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method.
52.GASB requires that endowments report investments at fair value unless the investments are in real estate
53.If a derivative is effective in reducing a government’s exposure to identifiable risks, the changes in the value of the derivative are reflected as deferred outflows or deferred inflows in the period that the value changes.
54.For governmental-type funds, Statement 53 (reporting of derivatives) applies only to reporting at the government-wide level, not the fund-basis statements.
55.Statement 53 (reporting of derivatives) does
not
apply to proprietary or fiduciary funds.