Blending of financial information is done only when component units and the primary government are so intertwined that they are essentially the same.

Question

Quizplus · Accepted Answer

Blending of financial information is done to present a comprehensive view of the financial activities of an entity that includes its component units. It is done only when the primary government and its component units are so closely related that they are essentially the same entity. In such cases, it is appropriate to blend the financial information of both entities to present a consolidated view of their financial position and performance.

Blending of Financial Information Is Done Only When Component Units