Final answer:
For a primary government to include a legally separate organization in its financial reports, it must exercise control over the organization, have access to its financial information, and hold the organization financially accountable.
Step-by-step explanation:
In order for a primary government to include a legally separate organization in its financial reports, several conditions must be met. First, the primary government must exercise control over the legally separate organization. This can be demonstrated through factors such as the primary government appointing a majority of the organization's governing body or having the power to approve the organization's budget.
Second, the primary government must have the ability to access the organization's financial information, either through a direct financial benefit arrangement or through legal requirements.
Finally, the legally separate organization must be financially accountable to the primary government. This means that the primary government can impose its will on the organization's financial decisions and has the ability to make changes to the organization's budget or operations.