In this problem, you will research reporting entities for governments in the GASB’s Governmental Accounting Research...

In this problem, you will research reporting entities for governments in the GASB’s Governmental Accounting Research System (GRS). Access the GRS database citing your results from the GASB guidance with utmost authoritative guidance. Provide requisite examples as requested from the GRS and cite your results from the Codification. Minimum of 2 pages required. Research the accounting issue and formulize your findings in a formal research memo. The formal memo should be in good form with proper grammar, conveying the results of your research.

Define a financial reporting entity. Give an example of a primary government. Define and give an example of a component unit. Explain the two methods of reporting the primary government and component units in the financial reporting entity and when each is required.

Solutions

Expert Solution

The financial reporting entity consists of

(a) The Primary Government

(b) Departments for which the primary government is financially accountable

(c) Other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting.

Examples Of Primary Government ......

The primary government can be a state government , a general purpose local government such as a city or county , or a special purpose government such as school district.

Component Units...............

Component units are legally separate organizations for which the elected officials of the primary government are officially accountable . Component units can be an organization for which the nature and significance of its relationship with a primary government are such that exclusion would cause the reporting entity financial statements to be misleading or incomplete. For example.. A county school under state government.

Methods of reporting the primary government.........

(1) Blending

(2) Discrete Presentation

ekkarill92 answered 1 year ago

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