Question

The following descriptions, modified for teaching purposes, appear in the note disclosures for the City of Myrtle Beach, South Carolina, for the year ended June 30, 20X6:
• 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?



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  • CreatedOctober 25, 2014
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