Financial Reporting Entity, Including Blended and Discrete Component Units
Free CPA BAR (Business Analysis & Reporting) lesson in State and Local Governments. 20 min read, ~3,031 words.
Primary government = state/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 financial statements misleading. Fiscal accountability exists when the primary government...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- III.A9
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