If a primary government reports a discretely presented component unit, then the primary government must

Question

Quizplus · Accepted Answer

When a primary government reports a discretely presented component unit, the financial information of the component unit should be included in the government-wide financial statements of the primary government. This means that the primary government must prepare consolidated financial statements that include the financial information of the component unit. No separate MD&A or note disclosures are required, but information related to the component unit may be included in the statistical section of the CAFR.

If a Primary Government Reports a Discretely Presented Component Unit