PwC submitted comments on the GASB's exposure draft, Blending Requirements for Certain Component Units. We support the board’s decision to establish a fourth blending requirement to address situations where the government is the sole corporate member of an NPO used in carrying out the government’s activities. In this type of NPO, the sole corporate member wields absolute power over the entity’s activities. We agree that in these circumstances, a blended presentation provides the best representation of the reporting entity. We encourage the board to further clarify the criteria and requirements for blending in additional circumstances, such as those related to non-member NPOs, majority-owned component units, limited liability companies, and limited partnerships.
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