United States

Blending certain component units into financial statements


The Governmental Accounting Standards Board (GASB) recently issued Statement No. 80, Blending Requirements for Certain Component Units - an amendment of GASB Statement No. 14. Statement 80 requires a component unit to be included in the reporting entity financial statements using the blending method when the component unit is organized as a not-for-profit corporation in which the primary government is the sole corporate member. Component units that are included in the reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organizations Are Component Units, are specifically excluded from the proposed guidance.

The requirements of Statement 80 are effective for reporting periods beginning after June 15, 2016, with earlier application encouraged.