Financial statements prepared in accordance with a special purpose framework.
|
Show A special purpose framework is a non-GAAP financial reporting framework that employs either a cash, tax, regulatory, contractual, or other basis of accounting. For example, a tax basis of accounting is used to file an organization’s tax return for the period covered by its financial statements. Or, a regulatory basis of accounting is intended to force the reporting entity to comply with the requirements of a specific regulatory agency. These frameworks are designed for a more specialized audience than one of the general-purpose frameworks, such as generally accepted accounting principles (GAAP). The nature of a special purpose framework can alter the content and format of an entity's financial statements and accompanying disclosures. The type of special purpose framework should be stated in the compilation, review, or audit report that an auditor issues; additional disclosures may be needed. What are special purpose framework financial statements?A special purpose framework is a non-GAAP financial reporting framework that employs either a cash, tax, regulatory, contractual, or other basis of accounting. For example, a tax basis of accounting is used to file an organization's tax return for the period covered by its financial statements.
When the financial statements of the client use a special purpose framework?2. When can an entity prepare special purpose framework financial statements? Entities can prepare special purpose framework statements whenever they are not otherwise required to issue U.S. GAAP statements.
What is financial statement framework?The term financial reporting framework is defined as a set of criteria used to determine measurement, recognition, presentation, and disclosure of all material items appearing in the financial statements.
What are the four special purpose frameworks?There are several options to choose from when selecting a special purpose framework including cash basis, modified cash basis, income tax basis, regulatory basis, contractual basis, and others. Cash basis is just as it sounds; the entity records cash receipts and cash disbursements.
|
