Which option properly describes the appropriate presentation format for significant component units?

The appropriate presentation format for significant component units is through combining presentations. This method allows for the financial information of component units to be displayed alongside the primary government's financial statements, specifically in the combining statements format. This is important as it provides a clearer view of the overall financial position and results of operations of both the primary government and its component units, enabling stakeholders to assess the financial health and operational effectiveness of the entire governmental entity as a single economic unit.

Combining presentations aggregate the financial data of the component units, which are legally separate entities but are financially accountable to the primary government. This approach ensures transparency and enhances the disclosure of critical financial information relevant to users of the financial statements, helping them better understand the financial interrelationships and responsibilities among different governmental layers.

The other options do not adequately convey the relationship and financial details of component units with the primary government, which is why they do not correctly describe the appropriate presentation format in this context.