CH 9 Sol - CHAPTER 9: Answers to Questions 9-4. FINANCIAL...

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CHAPTER 9: FINANCIAL REPORTING OF STATE AND LOCAL GOVERNMENTAL UNITS Answers to Questions 9-4. According to GASB standards, the three major sections of a CAFR are: (1) the Introductory Section, (2) the Financial Section, and (3) the Statistical Section. The required content of each section is described in Chapter 9. 9-6. A primary government 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. As a result, the component unit is reported as a part of the primary government. 9-7. 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 1-4 and 1-5. A blended presentation means that the financial information of the component units is reported in the Governmental Activities or Business-type Activities columns of the government-wide financial statements, along with that of the primary government. At the fund-level, if a component unit meets the major fund criteria it would be reported in a separate column of the appropriate fund financial statements as a primary fund. One exception is the General Fund of a component unit, which is reported as a special revenue fund of the primary government. 9-9.
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This note was uploaded on 04/12/2011 for the course ACCT 2500 taught by Professor Johnmalone during the Fall '08 term at Cuyahoga CC.

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CH 9 Sol - CHAPTER 9: Answers to Questions 9-4. FINANCIAL...

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