Unformatted text preview: its are reported with the
same fund types at the governmental or proprietary fund level. For example, if a
component unit has special revenue funds, those funds would be blended with (or
included with) the special revenue funds of the primary government. If the major fund
criteria are met, the fund would be shown as a major fund.
The controller will want to consider how closely allied the component unit is with the
primary government in making the decision about component unit presentation. A
blended presentation is used when the component unit is, in substance, a part of the
primary government. Some factors indicated on the flow chart in Illustration 9-1 that may
lead to blending include: the primary government appoints a voting majority on the
component unit’s board, the primary government is able to impose its will on the
component unit, and the component unit provides services almost exclusively to the
primary government. If the component unit does not meet the criteria for blending it
would be presented discretely.
9-7. General purp...
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