[William_777]

As I have been transitioning from REGS to FAR, I’ve been having some difficulty getting into FAR, and I’m trying to figure out what the problem is.

Is it me, or is Accrual (i.e. Financial) Accounting just more difficult than Cost (i.e. Tax) Accounting?

It would make sense, if it were. The standards of accrual accounting includes a lot of beastly adjustments due to the matching principle. There’s an IFRS vs GAAP contrast in accrual. And the structure the financials is more flexible (variable) than taxation due to a lack of standardized forms, like the 1040, 1120, etc., as well as many more methods for depreciation, interest and annuities, etc..

This transition is difficult. I guess that’s why the academic emphasis in accounting studies is on GAAP and not IRC.

Anyone care to comment on this?

wm

[musicamor]

I would disagree–I think FAR and the world of accrual accounting is much more simple than that of Tax accounting. Once you get your debits and credits straight–and understand how items flow through balance sheet accounts to the P&L–it becomes a lot easier.

Texas CPA - licensed in 2012!!!

[Author]

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