FINANCIAL REPORTING ENTITY

The concept underlying the definition of the financial reporting entity from GASB Statement No. 14 is that elected officials are accountable to their constituents for their actions. Relying upon this concept, the GASB concluded that the definition of the financial reporting entity should be based upon accountability. Consequently, the financial reporting entity now consists of (a) the primary government, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the …

…of the discretely presented component units by providing descriptive column headings. Additional guidance on implementing the above requirements is available in the "Guide to Implementation of GASB Statement No. 14 on the Financial Reporting Entity," a GASB implementation guide issued in a question and answer format. Resources: AICPA Web Site: www.aicpa.org/ <Tab/> GFOA Web Site: www.gfoa.org/ GASB Web Site: www.GASB.org/ FASB Web Site: www.fasb.org/