Financial Reporting Entity, Including Blended and Discrete Component Units

Free CPA BAR (Business Analysis & Reporting) lesson in State and Local Governments. 21 min read, ~3,088 words.

Primary government = state or general purpose local government that is legally separate, fiscally independent, and has a separately elected governing body. Component unit = legally separate organization for which the primary government is financially accountable OR whose exclusion would make the statements misleading. Fiscal accountability requires appointing a voting...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• III.A9

Browse all free CPA BAR lessons or jump into free CPA BAR practice questions.