61
Reporting Model-Component Unit Presentations
•Discrete presentation in government-wide statements
•Major component unit reporting choices:
–Separate columns in the government-wide statements
–Separate statements after fund presentations
–Condensed information in the notes
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ŘPrimarily impacts the OCG and State agencies who prepare stand-alone financial statements
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Statement 34 does not modify the guidance in paragraph 51 of Statement 14 for determining which component units are major.  That paragraph states “In determining which component units are "major," consideration should be given to each component unit's significance relative to the other component units and the nature and significance of its relationship to the primary government.”
If a discretely presented component unit does not issue a separate report, what additional reporting is required for that component unit in the entity’s financial statements?
Paragraph 50 in Statement 14 requires the reporting entity’s financial statements to include fund-type information for a discretely presented component unit that does not issues a separate report.  Statement 34 amended that requirement to be consistent with the change in the focus of fund-based reporting from fund-type to major funds.  Consequently, if a major component unit does not issue separate financial statements, fund financial statements (including its major funds) for that component unit would be included in the reporting entity’s financial statements as supplementary information.