TEI submits that, where recovery of an amount is highly speculative, the proper tax treatment, consistent with the generally accepted accounting principle
of matching current expenses with current income, is to permit a current deduction for the levied charge.
FEW ISSUES INVOLVING THE PREPARATION of financial statements in conformity with generally accepted accounting principles
have been more elusive and difficult to address and resolve--or of greater importance--than materiality.
The complexity of the features of the derivative or security may increase the complexity of measurement and disclosure considerations required by generally accepted accounting principles
The related parties aspect of the audit is important because: Generally accepted accounting principles
require disclosure of material related party transactions and certain control relationships; in the absence of adequate disclosure, financial statements may be distorted or misleading; and the instances of fraudulent financial reporting and misappropriation of assets have been facilitated by the use of an undisclosed related party.
The proposed SOP would provide guidance on accounting for investors' interests in unconsolidated real estate investments in financial statements prepared in conformity with generally accepted accounting principles
The legislation is in direct response to a final rule adopted by the National Credit Union Administration (NCUA), which requires member credit unions to have external audits of their financial statements but does not require that the audits be based on generally accepted accounting principles
or be audited by an independent licensed accountant.
Regulation 87(c) states that, "Course subject matter must pertain to financial statement preparation and/or reporting (whether such statements are prepared on the basis of generally accepted accounting principles
or other comprehensive bases of accounting), auditing, reviews, compilations, industry accounting, attestation services, or assurance services.
Independently audited yearend financial statements for the latest year, prepared in accordance with generally accepted accounting principles
, including an unqualified opinion.