[mjbey1s]

Can someone please help provide a clear distinction between these two methods of categorizing government entities? Every time I see a question, I am just not able to pick apart what I should be looking at to determine which one to choose?

I would appreciate if someone can help with this…

[Scared-cpa]

Okay, so I am currently studying for FAR myself but Ninja MCQ has helped me to usually get these types of questions correct.

If an entity is completely dependent upon a government, they are to be blended. If not, they are discretely presented. There are usually three criteria that all have to be met in order for it to be blended. However, I cannot remember them all lol. I believe (1) they share a board of directors, (2) city/county/etc. voices their opinion in how money is used and (3) they cannot levy their own taxes – have to receive them from a higher level. I can't be 100% correct that these are right, but it's along those lines. Usually in a question, I will look for three criteria to be met and if they are not, they are discretely presented. If three criteria are mentioned and all three met, then they are blended.

Here is a link to a more in-depth reading. It looks helpful I just don't have time to read over it myself right now and pick it apart for you.

https://www.gasb.org/st/summary/gstsm14.html

[j3cpa]

Discrete or Separately stated. Separate elected officials with their own budgets. separate accounting for activities.

Blended is when the component unit serves other parts of the primary government.

Study Material:
GLEIM
BEC - FEB/2012
AUD - FEB/2012
FAR - JULY/2012
REG - JULY/2012

[Author]

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