The following descriptions, modified for teaching purposes, appear in the note disclosures for the City of Myrtle
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• The Myrtle Beach Downtown Redevelopment Corporation, a legally separate entity, is responsible for promoting and assisting in the development of business concerns and residential housing in the downtown area of Myrtle Beach. The City Council appoints a voting majority of the Corporation’s 11-member board. The city is considered to have significant influence in the Corporation’s operations. Separate financial statements are not prepared by the Corporation.
• The Myrtle Beach Public Facilities Corporation is governed by a three-member board appointed by the City Council. Although it is legally separate from the city, the corporation’s sole purpose is to serve the city exclusively as a financing agent. Separate financial statements are not prepared by the corporation.
• The Myrtle Beach Convention Center Hotel Corporation, a legally separate entity, is responsible for the construction and management of a convention center hotel. The City Council appoints all members of the corporation’s board. The City Council also approves the corporation’s budget and debt issuances. The corporation does issue separate financial statements. The city has an equity interest in the corporation.
Required
Answer the following questions:
1. Are any of these entities blended component units? If so, explain which one(s) and why.
2. Are any of these entities discretely presented component units? If so, explain which one(s) and why?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Governmental and Nonprofit Accounting
ISBN: 978-0132751261
10th edition
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
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