ACTIVITY WITHIN THE FINANCIAL REPORTING ENTITY
Perhaps the single most striking feature of public-sector financial reporting is the fact that state and local governments report separate funds and component units within a single financial reporting entity. Such disaggregated reporting raises the special challenge of accounting for balances and activity among funds and component units. This article will explore how to meet that challenge in a variety of different circumstances commonly encountered in practice.
Basic principles
In approaching the entire issue of accounting for balances and activity among funds and component units it is important to distinguish blended component units from ...