Reporting Discretely Presented Component Units
GASBS 34’s requirement for presenting information about discretely presented component units can best be described by the term “overview.” (Note that this discussion does not apply to blended component units, which are presented as if part of the primary government, and component units that are fiduciary in
nature, which are included only in the fund financial statements with the primary government’s fiduciary funds.)
Information about each major component unit is required to be presented. Information about nonmajor component units is aggregated in one column. The requirements for reporting can be accomplished by one of three alternatives.
Budgetary Presentations
As described in Chapter 4, a government’s basic financial statements must include a budgetary comparison (on the budget basis) for the general and special revenue for which annual budgets have been legally adopted either as part of the basic financial statements or as required supplementary information. This requirement would apply to blended component units as well. Budgetary data for the discretely presented component units that use governmental accounting are not required to be presented.
Taken From : Governmental Accounting Made Easy