Which statement is FALSE concerning discretely presented component units in basic financial statements?

The assertion that none of the statements concerning discretely presented component units is false indicates that all provided options accurately reflect the principles surrounding the reporting of these units in basic financial statements.

When discussing how discretely presented component units are reflected in financial statements, it’s crucial to understand that these units provide a clearer picture of the overall financial position of the primary government. Presenting them in separate columns enhances transparency and ensures stakeholders can easily identify financial information relevant to these component units without confusion.

Information regarding these component units indeed comes from their respective government-wide financial statements, which ensures that the financial data aligns with how the primary government aggregates financial information. This consistency in reporting is vital for accurate financial analysis and performance measurement.

Furthermore, including information on major individual component units is important, as it sheds light on the financial activities that are significant to the primary government’s operations, allowing users to assess performance and impacts adequately.

Given this context, the accuracy and integrity of financial reporting related to discretely presented component units are well-established, leading to the conclusion that none of the statements provided is false. This reinforces the understanding of the reporting standards expected in government accounting practices.