GASB provides guidance for determining when a primary government should include a legally separate organization in its
Question:
GASB provides guidance for determining when a primary government should include a legally separate organization in its financial report. What would be required for the primary government to include the related entity in its financial reports?
A The primary government controls a voting majority of the other organizations governing board or otherwise may impose its will on the organization.
bThe other organization is fiscally dependent upon the primary government.
cThe related organization must represent a financial benefit or burden to the primary government.
dEither the primary government controls a voting majority of the other organizations governing board or otherwise may impose its will on the organization or the other organization is fiscally dependent upon the primary government plus the related organization must represent a financial benefit or burden to the primary government choice would be sufficient to require inclusion.
Accounting for Governmental and Nonprofit Entities
ISBN: ?978-0073379609
15th Edition
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus