Which statement is required for Fiduciary Funds?

The required statement for Fiduciary Funds is the Statement of Fiduciary Net Position. This statement provides critical information related to the assets, liabilities, and net position of fiduciary funds, which are used to account for resources held by the government in a trustee or agency capacity for others. In this context, fiduciary funds include private-purpose trusts, investment trusts, pension (and other employee benefit) trusts, and agency funds.

The Statement of Fiduciary Net Position outlines the resources that are available for the beneficiaries and shows how those resources are financed and managed. This transparency is essential, as it allows stakeholders to evaluate the government’s stewardship over these resources. Unlike governmental funds, which focus on the flow of financial resources, the fiduciary statement emphasizes the balance sheet view of the fiduciary activities, thus ensuring that users understand the current financial position of the fiduciary funds.

In contrast, the other statements mentioned serve different purposes or are not applicable to fiduciary funds specifically. For instance, the Statement of Changes in Financial Position provides information on how cash flows in and out of an organization but is not required for fiduciary funds, which focus on net position rather than cash flow. The Statement of Governmental Activities is relevant for governmental funds and presents the