A government merger occurs when two or more legally separate governments are combined to form a new government, and the original governments cease to exist. This includes combinations like a city and county merging to form a unified government, with combined assets, liabilities, and operations.
There is no acquiring government — rather, the governments voluntarily combine into a new legal entity.
Relevant References:
GASB Statement No. 69 – Government Combinations and Disposals of Government Operations
GASB Codification Section G60 – Definitions of Mergers vs. Acquisitions
GFOA Government Restructuring Guidelines
Answer: A. a government merger
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