How should a government report its guaranteed share in an investment pool if it's guaranteed not to fall below a certain amount?

When a government is reporting its guaranteed share in an investment pool with a minimum threshold, it should use the guaranteed value for reporting purposes. This approach accounts for the security offered by the guaranteed investment, meaning that while the fair value of investments fluctuates based on market conditions, the guaranteed share assures that the government will not receive less than a specified minimum amount.

Using guaranteed value reflects the actual economic outcome the government can expect from its investment, providing clarity and reliability in financial reporting. It highlights the stability of the investment relative to market risks, making it essential for accurate reporting in governmental financial statements. This measure ensures that readers of the financial statements can trust that the values presented are representative of the lowest expected return, thereby maintaining transparency and consistency in the government's financial practices.