The focus of the government-wide financial statements is on the primary government, but discretely presented component units are also included. The columnar approach will depend on how many discretely presented component units are included in the reporting entity. Governments can present all these entities in a single column, or in separate columns to highlight significant characteristics.
1. There are three options for presenting the individual component unit information. They are as follows:
A. Presenting individual columns in the government-wide statements
B. Including combining statements of major component units after the primary government's fund statements
C. Presenting condensed financial statements in the notes to the reporting entity's financial statements
2. The method you choose might also depend on whether the component unit issues separate stand-alone financial statements.
"Blended" component units are included with the government's other funds. These entities look like departments of the government and should be included in the appropriate fund classification (e.g., governmental, proprietary, or fiduciary). Details about an individual blended component unit would be available in the fund statements or the combining statement of nonmajor funds.