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
Accordingly, to conform company financial statements to United States generally accepted accounting principles
the company has recorded additional non-cash expenses of $148,500 in fiscal 1989 (related to the release of 225,000 shares from escrow), $198,750 in fiscal 1990 (related to the release of 375,000 shares from escrow) and $3,445,750 in the third fiscal quarter ended Dec.
Understanding generally accepted accounting principles
and financial statements;
The proposed SOP would provide guidance on accounting for certain costs and activities related to property, plant and equipment (PP&E) in financial statements prepared in conformity with generally accepted accounting principles
In such a case, an auditor may suggest that the client include wording in the representation letter similar to the following: "I am responsible for the fair presentation in the financial statements of financial position, results of operations, and changes in financial position in conformity with generally accepted accounting principles
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 subject matter of the report, or the presentation being reported on, is based on measurement or disclosure criteria contained in contractual agreements or regulatory provisions that are not in accordance with generally accepted accounting principles
or an other comprehensive basis of accounting.
Epstein outlines how recent and pending changes to generally accepted accounting principles
(GAAP) are likely to create confusion when corporations and their attorneys try to enforce accounting-related contractual terms commonly contained in, among others, merger and acquisition (M&A) agreements, earn-outs and percentage lease arrangements.
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 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.