AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) GAFRB Question # 27 Topic 3 Discussion
GAFRB Exam Topic 3 Question 27 Discussion:
Question #: 27
Topic #: 3
A governmental financial reporting entity is comprised of all of the following EXCEPT
A.
the primary government.
B.
any organization for which records are kept by the primary government.
C.
organizations for which the primary government is financially accountable.
D.
other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.
A governmental financial reporting entity includes:
The primary government
Legally separate organizations for which the primary government is financially accountable
Other organizations whose exclusion would render the financial statements misleading or incomplete (per GASB Statement No. 14 and No. 61)
Merely keeping records for an organization does not make it part of the financial reporting entity unless there is financial accountability or a significant relationship.
Relevant References:
GASB Statement No. 14 – The Financial Reporting Entity
GASB Statement No. 61 – Omnibus Amendments to GASB No. 14
GASB Codification Section 2100 – Reporting Entity
Answer: B. any organization for which records are kept by the primary government
══════════════════════════════════
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit