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.

1. Reporting each major component unit in a separate column in the government-wide statement of net assets and statement of activities.
2. Including combining statements of major component units in the reporting entity’s basic statements after the fund financial statements. Aggregate totals would then be included in the government-wide financial statements for component units, supported by this combining schedule.
3. Presenting condensed financial statements in the notes to the financial statements.

Taken From : Governmental Accounting Made Easy

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