The three criterions that are required by foundations to be reported according to GASB statement 39 are as follows:
Firstly, the economic resources that is held by or received by the separate organization (the foundation) are entirely or almost entirely for the direct benefit of the primary government, its component units and/or its constituents.
Secondly, the primary government, components units and/or its constituents, are entitled to or have the ability to access a majority of the economic resources received or held by the separate organization (foundation).
Thirdly, the economic resources received or held by an individual organization (foundation) that the specific government is entitled or have access to, must be signification to the primary government.
GASB 39 is an amendment of Statement No. 14, The Financial Reporting Entity, is that all entities associated with a primary government are potential component units and should be evaluated for inclusion in the financial reporting entity.
The three criterions that are required by foundations to be reported according to GASB statement 39 are as follows:
ReplyDeleteFirstly, the economic resources that is held by or received by the separate organization (the foundation) are entirely or almost entirely for the direct benefit of the primary government, its component units and/or its constituents.
Secondly, the primary government, components units and/or its constituents, are entitled to or have the ability to access a majority of the economic resources received or held by the separate organization (foundation).
Thirdly, the economic resources received or held by an individual organization (foundation) that the specific government is entitled or have access to, must be signification to the primary government.
GASB 39 is an amendment of Statement No. 14, The Financial Reporting Entity, is that all entities associated with a primary government are potential component units and should be evaluated for inclusion in the financial reporting entity.
ReplyDelete