Generally Accepted Accounting Principles (GAAP) has become increasingly complex due to the changing environment. While this complexity is justified in many situations, many entities find that the cost does not justify the benefits. As a result, many entities look at an alternative to GAAP and turn to Special Purpose Frameworks. In this course we will look at the most popular alternative frameworks as well as some new and other interesting frameworks. We'll also spend time on the theory that should go into your decision- making when deciding to use a Special Purpose Framework.
Learning Objectives
Upon completion of this course, the participant should be able to:
Define Special Purpose Frameworks and provide examples.
Explain the differences between Special Purpose Frameworks and OCBOA.
Explain the purpose of general-purpose financial statements.
Explain what make financial statements useful.
Apply a methodology for deciding on footnotes for a Special Purpose Framework.
Cite the authoritative guidance for Special Purpose Frameworks.
Define the four primary categories of Special Purpose Frameworks.
Decide when it would be appropriate to use a Special Purpose Framework.
Apply the Cash, Modified Cash and Tax bases of accounting.
Explain the theory behind regulatory and contractual bases of accounting.
Explain the major elements of IFRS-SME.
Explain the major elements of FRF-SME.
Apply resources for preparing financial statements under FRF-SME.
Major Topics
Change from GAAP to an SPF
Financial Statement Theory
Economic Resources & Claims
Changes in Resources and Claims
Recognition and Measurement Issues
Presentation and Disclosure
Disclosure Guidelines
Major Differences Between FRF-SME and the Tax Basis of Accounting
Sections of the FRF-SME
