Blueprints- Special Purpose Frameworks

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  • #1778695
    Mark
    Participant

    I’m attempting to memorize the answers to all of the “Remembering and Understanding” tasks in the Blueprints prior to taking my first attempt at FAR. The Special Framework group has the below task:

    “Recall appropriate financial statement titles to be used for the financial statements
    prepared under a special purpose framework.”

    Does anyone know what the financial statement titles are? I can’t find the answer anywhere in the Wiley study materials or online.

    Thanks

Viewing 4 replies - 1 through 4 (of 4 total)
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  • #1778746
    hashbrown
    Participant

    I don’t believe the SPF has specific titles, although they should indicate the accounting basis used and not use the normal GAAP Balance Sheet and Income Statement titles.

    Examples would be something like this:

    Statement of Assets and Liabilities – Income Tax Basis
    Statement of Revenues and Expenses – Income Tax Basis
    Statement of Assets and Liabilities – Modified Cash Basis
    Statement of Revenues and Expenses – Modified Cash Basis

    Sometimes you will see other titles such as

    Statement of Revenues Collected and Expenses Paid – Modified Cash Basis

    #1778784
    Becca
    Participant

    Statement titles such as “Balance Sheet,” Statement of Financial Position,” “Statement of Income,” and “Statement of Cash Flows” are typically correlated to be in compliance with GAAP. Therefore, statements prepared under Special Purpose Frameworks must title their statements differently to avoid the implication that the financial statements are presented in accordance with GAAP. Examples of Special Purpose Frameworks statement titles can be (but are not limited to):

    Cash Basis Balance Sheet
    Statement of Assets and Liabilities – (Modified) Cash Basis
    Statement of Assets and Liabilities Arising from Cash Transactions
    Balance Sheet—(Modified) Cash Basis

    Cash Basis Income Statement
    Statement of Revenues and Expenses – (Modified) Cash Basis
    Statement of Revenues Collected and Expenses Paid
    Statement of Cash Receipts and Disbursements
    Statement of Income—(Modified) Cash Basis

    Tax Basis Balance Sheet
    Statement of Assets, Liabilities, and Equity — Income Tax Basis
    Balance Sheet–Income Tax Basis

    Tax Basis Income Statement
    Statement of Revenue and Expenses — Income Tax Basis
    Statement of Income–Income Tax Basis

    #1778787
    Becca
    Participant

    **Cash Basis Balance Sheet, Cash Basis Income Statement, Tax Basis Balance Sheet, and Tax Basis Income Statement are meant to be headers**

    #1778896
    Mark
    Participant

    That makes sense! Thanks hashbrown and Becca.

Viewing 4 replies - 1 through 4 (of 4 total)
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