Final answer:
The GASB Codification Section 2100 defines the primary government and its component units as the reporting entity, which is critical for proper financial reporting in governmental accounting.
Step-by-step explanation:
The GASB Codification Section 2100 establishes the primary government and its component units as the reporting entity.
This classification dictates that primary governments along with their component units, which may include additional governmental organizations for which the primary government is financially accountable, are presented together in financial statements to provide a comprehensive view of the financial position and activities of the primary government.
Understanding this framework is essential for accurate governmental financial reporting and compliance with accounting standards.