: The financial statements
subject to the engagement performed in accordance with SSARSs are those of the entity The preparation and fair presentation of such financial statements
requires identification of the applicable framework.
Moreover, questions raised in our recent stock options project suggested constituents would take more care determining the options expense numbers to be recognized in the financial statements
under Statement 123(R) than in the numbers disclosed outside the statements under Statement 123.
Hold training sessions that focus on following a transaction from initiation straight through to the general ledger and financial statements
to help less experienced staff members get up to speed quickly.
The real challenge to the consistent determination and reporting of tax liabilities in financial statements
, he concluded, lies in the application of complex and nebulous tax rules to myriad facts and circumstances.
SSARS 13 expands SSARS to apply when an accountant is engaged to compile or issues a compilation report on one or more specified elements, accounts, or items of a financial statement
Questions 4-11 begin with worldwide consolidated net income (loss) from financial statements
and reconciles to net income (loss) for includible corporations on line 11.
The restatement provides that accountants will be held liable to individuals actually known to them or intended third-party users of financial statements
, including members of a "known or intended class" of users of financial statements
Another case in point is the FASB's mandate (SFAS 106) that companies use accrual accounting, rather than the pay-as-you-go method, for post-retirement benefits and that obligations accrued in the past be recognized in the financial statements
. Meeting this requirement would boost liabilities and cause a corresponding decrease in retained earnings.
The information disclosed in the annual audited financial statement
has significant impact on the dealings between potential purchasers, lending institutions and owners and the property.
However, financial statements
prepared under GAAP are subject to these standards, even for smaller privately held companies.
One type of user could read financial statements
to evaluate business risks and profitability in order to determine a company's viability.
Organized to be used as a reference tool, it provides practitioners with practical, though non-authoritative, guidance on nonprofits' financial statements