Other Financial Statement Presentations

Question 1

Other Comprehensive basis of accounting

Answer 1

non gaap
include cash basis; tax basis; regulatory basis; definite set of criteria have substantial support that are applied to all material financial statement

Question 2

general ocboa presentation guidelines

Answer 2

financial statement title should differentiate the OCBOA financial statements from the accrual basis financial statements

financial statements should explain change in equity accounts

cash flow not required

Question 3

cash basis financial statements

Answer 3

includes only statement of cash and equity

cash is the only asset, no liabilities, and equity = cash

2) Includes statement of cash receipts and disbursements

Question 4

Modified cash basis financial statements

Answer 4

if they produce cash basis financial statements, they use the modified basis of accounting

includes elements of cash basis and accrual basis of accounting

modifications made to cash basis financial statements shoudld have substantial support. common modifications include:

• capitalizing and depreciating fixed assets
• accrual of income taxes
• capitalizing inventory
• reporting investments at fair value and recognizing unrealized gains or losses

Question 5

Income tax basis financial statements

Answer 5

if not required to use accrual basis of accounting can use tax basis of accounting

well suited for companies that have complex operations

1) accounting issues: special treatment must be given to non taxable revenues and expenses: can be reported as separate line items in the revenue expenses section of the statements,; additions or deductions to net income, or as a disclosure on a note

Question 6

Personal financial statements

Answer 6

presentation:
a) statement of financial condition which is like the balance sheet
b) assets are reported at estimated current fair value
i) life insurance payables are netted against csv of life insurance
ii) business investment a big part of an individual’s total assets should be presented as a single amount at estimated current value separate from other investments
iii) vested pension plan benefits are reported as fair value

b) Liabilities are reported at estimated current amount
c) Assets and liabilities are presented in order of liquidity and maturity, with NO current and noncurrent classifications

Question 7

Personal financial statements

Answer 7

assets and liabilities are valued at fair value. Remember to determine the future taxes on any gains from selling assets