GASB 84 fiduciary reporting changes require what?

• A. Consolidation of fiduciary funds into governmental funds.
• B. Separate statements for fiduciary funds and clarified fiduciary activities.
• C. No changes to fiduciary reporting.
• D. Fiduciary funds not reported in financial statements.

Answer: (B)

GASB 84 changes fiduciary reporting by requiring fiduciary activities to be shown in their own separate financial statements, distinct from the government’s own activities. This means fiduciary funds get their own statements—a statement of fiduciary net position and a statement of changes in fiduciary net position—and the definition of what counts as fiduciary activity is clarified. Governments no longer present fiduciary funds as part of the governmental fund financial statements; instead, these resources are reported separately so users can clearly see resources held in trust or as custodians for others. This emphasis on separate reporting and clarified fiduciary activities is why the correct approach is to present fiduciary funds and activities in separate, clearly defined statements.