CPE: 4 hours
Category: Accounting & Auditing
Advanced prep: None
Who should attend: Accountants who prepare financial statements; perform compilations, reviews or audits for small- and medium-sized businesses; and tax accountants who need to understand financial statements in connection with performing tax services.
Examine the bases of accounting available to small- and medium-sized privately owned businesses, including the AICPA's Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs); cash and tax bases of accounting; other special purpose frameworks; and GAAP. This course examines the features, benefits and risks associated with the use of each of these frameworks and offers guidance for the professional judgments accountants must make when applying each.
Upon completion of this course you will be able to identify:
- special purpose frameworks, as well as GAAP frameworks;
- the primary differences between the frameworks;
- the situations in which use of each framework might be useful;
- the risks to a company and its independent accountants associated with each framework; and
- the ways that framework selection impacts financial statements, including disclosures, and impacts compilations and reviews.
- Special purpose frameworks vs. GAAP
- AICPA's Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs)
- Cash and tax bases of accounting
- Other comprehensive basis of accounting (OCBOA)
- Revenue recognition
- Accouting methods
- Financial statements
- Compilation, review and audit reports