Based on GASB rules for financial reporting define and describe the two methods of reporting the primary government and component units in the financial reporting entity.
GASB standards have two rules for reporting component unit financial information: blending and discrete presentation.
Blending is when the financial information of the component units becomes part of the primary governemnts because they are so closely related.
Discrete Presentation is when the financial info. from the component unit is reported in column formart, seperate from the primarys financials, each with its own totals.
Units that the that are a boon/burden to the primary government, and/or that the primary government can impose its will on, are component units. If the component unit's activities are so closely related to the primary government's that it would be very difficult to distinguish between the two, then blending reporting is used, where the component unit is mixed in to the primary government's statements. Usually discrete reporting is used, where the component unit is reported spearately.
GASB sets up two financial reporting methods: blending and discrete presentations. Blending presentation is conducted only when the component unit is solely acting on behalf of the primary government. This means that there is almost no different in financial report between the two. The discrete presentation is when the component unit is reported separately on the column to the right of the primary government. GASB prefers the discrete presentation.
GASB standards have two rules for reporting component unit financial information: blending and discrete presentation.
ReplyDeleteBlending is when the financial information of the component units becomes part of the primary governemnts because they are so closely related.
Discrete Presentation is when the financial info. from the component unit is reported in column formart, seperate from the primarys financials, each with its own totals.
Units that the that are a boon/burden to the primary government, and/or that the primary government can impose its will on, are component units. If the component unit's activities are so closely related to the primary government's that it would be very difficult to distinguish between the two, then blending reporting is used, where the component unit is mixed in to the primary government's statements. Usually discrete reporting is used, where the component unit is reported spearately.
ReplyDeleteGASB sets up two financial reporting methods: blending and discrete presentations. Blending presentation is conducted only when the component unit is solely acting on behalf of the primary government. This means that there is almost no different in financial report between the two. The discrete presentation is when the component unit is reported separately on the column to the right of the primary government. GASB prefers the discrete presentation.
ReplyDelete