1. Per GASB Statement No. 34, permanent funds are classified as fiduciary funds. 2. In accounting fo

1. Per GASB
Statement No. 34, permanent funds are classified as fiduciary funds.

2. In accounting
for permanent funds only the income can be spent; the principal must be preserved
intact.

3. Fiduciary funds
focus on current financial resources and use the full accrual basis of
accounting.

4. Fiduciary funds
are excluded from the government-wide financial statements.

5. The concept of
major versus nonmajor funds does not apply to permanent funds, as it does to
governmental and proprietary funds.

6. Accounting for
the employer’s contribution to a defined contribution pension plan is straight
forward, because the employer is obligated only to make annual contributions in
the amount specified in the plan terms.

7. Accounting for
the employer’s contribution to a defined benefit pension plan is straight
forward, because the employer is obligated only to make annual contributions in
the amount specified in the plan terms.

8. Not-for-profits
report all investment gains and losses on endowments as additions to
temporarily restricted net assets, regardless of donor-imposed restrictions.

9. An employer may
have a liability to a defined benefit pension plan other than for its annual
required contributions, depending on the future financial health of the plan.

10. In an agency
fund, assets always equal fund balances because there are no liabilities.