Financial Statements 
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Fiduciary Accounting
Business Financial Statements
Personal Financial Statements
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Fiduciary Accounting
Charge and Discharge Statement – The fiduciary’s financial statement
- Fiduciary accounting is NOT accounting under business Generally Accepted Accounting Principles (GAAP).
- Fiduciary accounting is “responsibility” accounting.
- Accounting for assets via charges & credits to principal & income.
- Generally cash basis, except for amortization, depletion, and depreciation.
- According to the trust document or will, trustee’s discretion where granted, then state law. If no rule and discretion not granted, allocate to principal.
- Accountant must be impartial, not favoring either income or principal/remainder beneficiaries.
Fiduciary accounting income, while different from taxable income, affects the tax liabilities of the trust or estate and its beneficiaries because it affects the "Income Distribution Deduction" on the tax return.
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Business Financial Statements
Compiled – Client’s information put into the form of financial statements without any analysis or testing.
Reviewed – Client’s information put into the form of financial statements; limited assurance provided through accountant’s inquiry and analytical procedures.
Agreed-upon procedures – specified procedures applied or information presented in format required by insurance company or bank.
Assistance with bank requirements, including initial design, amendments, and what-if analysis for impact of alternative actions on EBITDA and covenant ratios.
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Personal Financial Statements
Compiled – Client’s information put into the form of financial statements without any analysis or testing.
Reviewed – Client’s information put into the form of financial statements; limited assurance provided through accountant’s inquiry and analytical procedures.
Agreed-upon procedures – specified procedures applied or information presented in format required by insurance company or bank.
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