Special Purpose Frameworks and Reporting Implications

This chapter covers special purpose frameworks that differ from standard GAAP reporting. These questions often hinge on recognizing that the framework itself has changed, which changes both presentation and the interpretation of the statements.

In This Chapter

• Cash-Basis Frameworks explains common departures from accrual accounting.
• Tax-Basis Financial Statements covers reporting built on tax accounting.
• Regulatory and Contractual Frameworks introduces additional special-purpose settings.
• Reporting and Compilation Considerations addresses the practitioner implications of these frameworks.

How to Use This Chapter

• Read this chapter when framework-identification errors cause reporting mistakes.
• Focus on what makes the basis of accounting different from GAAP.
• Return here whenever a FAR miss involves a non-GAAP reporting framework.

In this section

• Cash-Basis and Modified Cash-Basis Reporting
  FAR coverage for cash-basis reporting, modified cash-basis adjustments, and departures from accrual reporting.
• Tax-Basis Financial Statements and Key GAAP Differences
  FAR coverage for tax-basis reporting, recurring GAAP adjustments, and common presentation differences.
• Regulatory- and Contractual-Basis Financial Statements
  FAR coverage for reporting frameworks imposed by regulators, lenders, or contracts outside standard GAAP.
• Reporting and Compilation Issues for Special Purpose Frameworks
  FAR coverage for compilation and reporting implications when statements use special purpose frameworks.