9 5 a primary government has a separately elected

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Unformatted text preview: ernment has a separately elected governing body, is legally separate, and is financially independent. A component unit, however, is not financially independent of the primary government. Additionally, an entity is considered a component unit if the primary government appoints a majority of the voting members of the entity’s board or if the primary government can impose its will on the entity. As a result of its relationship with the primary government, the component unit is reported as a part of the primary government. 9-6. A discrete presentation results in reporting the financial information of component units in separate columns (or combined into one separate column) of the financial statements, such as shown in Illustrations A1-1 and A1-2. A blended presentation means that the financial information of the component units is reported in the Governmental Activities 9-2 Chapter 09 - Financial Reporting of State and Local Governments Ch. 9, Answers, 9-6 (Cont’d) or Business-type Activities columns of the government-wide financial statements along with that of the primary government. Blended component un...
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This note was uploaded on 05/20/2010 for the course ACCOUNTING 580 taught by Professor Waymire during the Spring '10 term at Northern Virginia.

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