OCBOA Financial Statements
- Topics:
- Financial Statements
- Tags:
- AICPA,
- Finance,
- Financial,
- Financial Accounting,
- Financial Planning,
- Financial Statement,
- Financial Statements
FREE Registration is required
Overview: One of the small business tax clients asks a person to prepare and report on a set of financial statements. Because one is familiar with the company, it has entered into an interest rate swap to lock in a low rate. The company also has a significant amount of goodwill and other intangible assets that may be subject to impairment as well as considerable fixed assets still subject to depreciation. It wants financial statements the company’s owners and executives can easily understand. Person may wonder whether there is a way to comply with the client’s request that is both cost-effective and less complicated than GAAP-based financial statements. Before a person turns down the engagement, it might want to consider preparing and reporting on the financial statements using an “other comprehensive basis of accounting” (OCBOA). In situations where GAAP-basis statements are not necessary because of loan covenants, regulatory requirements, or similar circumstances, an OCBOA may just be the answer.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: HTML | Date: Oct 2003 | Pages: 1
