NAA2609. Non-GAAP Frameworks

U.S. generally accepted accounting principles (GAAP) isn’t the best financial reporting framework for all entities. This issue is a common peer review finding when financial statements are prepared in accordance with special purpose frameworks, such as, cash-basis, modified cash-basis, tax basis, and the AICPA’s Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs). This session will cover the special purpose frameworks that are available, how they differ from GAAP (including recent changes to FRF for SMEs), and the common peer review findings.

Learning Objectives:

• Distinguish the differences between special purpose frameworks.
• Recognize the reporting requirements in AICPA Professional Standards when financial statements are prepared in accordance with a special purpose framework.
• Identify the common peer review findings for special purpose frameworks.
• Recall the recent changes to the AICPA’s Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs).