The chair of the
Interpretation 10 clarifies the classification and presentation of non-federal nonentity Fund Balance with
SFFAS 1, paragraph 31 was amended by SFFAS 31, Accounting for Fiduciary Activities, in an effort to clarify the definition and reporting for fiduciary amounts on deposit in the
Interpretation 10 clarifies that the inclusion of “other non-federal non-entity FBWT” in paragraph 31 of SFFAS 1 was intended to provide for similar treatment of activities that were comparable with fiduciary activity but that had not been identified specifically in SFFAS 31. Interpretation 10 clarifies that the Board did not intend to require similar treatment for activities that were explicitly excluded from the provisions of SFFAS 31.
Although amounts received in deposit accounts may come from non-federal nonentity sources for unfilled orders, these amounts do not qualify as fiduciary activity because SFFAS 31 specifically excludes unearned revenue from fiduciary activity reporting. Therefore, it would be inconsistent to apply the phrase “other non-federal non-entity” to unearned revenue, including amounts received from non-federal sources for unfilled orders. Hence, non-federal non-entity amounts received for unfilled orders that are reflected in FBWT should be reported as an intragovernmental asset of the component reporting entity.
“Interpretation 10 provides clarification to SFFAS 1 that will help ensure consistent reporting of intragovernmental assets,” according to Chairman Scott.
Interpretation 10 is available at https://fasab.gov/accounting-standards/.