Question

Which of the following is not important when determining if an organization falls under the jurisdiction of GASB for financial reporting purposes?
a. An entity receives over half of its resources from governmental entities.
b. An entity that has the power to enact and enforce a property tax levy.
c. The majority of governing board members are appointed by a government official.
d. The potential for unilateral dissolution by a government entity with the net assets reverting to the government upon dissolution.

Answer 1

The answer is a - An entity receives over half of its resources from governmental entities.

An organization (Not-for-profit) has to report under GASB (Governmental Accounting Standards Board) if it posses one or many of the following characteristics:

1. Has the power to enact and enforce a property tax levy.
2. The majority of governing board members are appointed by a government official.
3. The potential for unilateral dissolution by a government entity with the net assets reverting to the government upon dissolution.