Component Unit Reporting in the New Reporting Model
- Topics:
- Records and Document Management
- Tags:
- Asset Management,
- Software,
- Operational Planning,
- Government,
- Financial Statements,
- Financial Planning,
- Financial Accounting,
- Finance,
- Enterprise Software,
- Certified Public Accountant,
- ...
- Source:
- The CPA Journal
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Overview: The Government Accounting Standards Board (GASB) recently decided to reevaluate the reporting requirements of GASB 14, The Reporting Entity, which established component unit reporting. The paper propose a new definition of major discretely present component units (DPCU). They believe that their proposal merits consideration and that GASB should change the options for reporting these component units in the basic financial statements of the new reporting model. The paper analyzes more than 200 comprehensive annual financial reports (CAFR) that has led to believe that many governments already have the DPCUs that would meet the proposed definition. One potential method for determining major DPCUs would be to apply a two-step process similar to the one that PGs use to determine major funds is to determine if an individual DPCU is at least 10% of all DPCUs for one of the reporting elements: assets, liabilities, revenues, or expenditures/expenses and determines if such DPCUs also exceed 5% of the reporting entity’s totals for the same reporting element.
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Format: HTML | Date: Jan 2001 | Pages: 1
